Taking out volatile food and
energy, core prices were tame and inflation remained relatively flat, according
to the Labor Department.
Meanwhile, industrial
production rose 0.1 percent in June, the fourth straight month with gains,
while manufacturing dropped 0.4 percent after three months of bolstering the
nation’s economic recovery, according to the Federal Reserve.
Claims dropped for the second
straight week and for the third time in the past month. Unemployment numbers
have hovered around 450,000 for the past several months, showing no real
downward movement, which is needed to push along the recovery.
If job numbers continue to
fall for the next several weeks, economists might be become more upbeat about the
job market.
Economists argue jobless
claims need to drop into the low 400,000s or high 300,000s to reflect stronger
job growth in the private sector.
The Senate is expected to
pass a $34 billion bill early next week that will provide for an extension of
unemployment benefits through November. The bill has stalled out in the upper chamber
behind a Republican filibuster. Senate Republicans have argued the bill should
be paid for and not add to the deficit.
Since extended unemployment insurance expired June 2, almost 2.5
million people have lost their benefits beyond the initial 26 weeks provided by
states.