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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

New Jobless Claims Jump More Than Expected, Personal Spending Rises

New jobless claims last week jumped 17,000 over the previous week, coming in at 551,000, higher than the 531,000 claims expected.

Continuing jobs claims came in at 6.09 million, slightly less than expected.

In other data, personal spending rose 1.3 percent, which was better than the 1.1 percent forecast.

Also, personal income rose 0.2 percent, barely beating the forecast of 0.1 percent.

The jobless claims news is bad news and the market probably will act accordingly. It's also a precursor to tomorrow's September national unemployment rate, which is expected to rise from 9.7 percent to 9.8 percent. Economists expect the number to crest above 10 percent. No real jobs recovery can begin until the weekly new claims number gets down into the 400,000s.

It's a big day for economic data, and stock market futures are weak in anticipation. We'll know a little more about the state of the economy by 10 a.m. today. In addition to the jobless claims and personal income data just released, here's what's coming up in the next 90 minutes:

-- Fed Chairman Ben Bernanke testifies before the House Financial Services committee, speaking on consumer financial protection. 9 a.m.

-- The Institute for Supply Management issues its monthly manufacturing data, painting a picture of the nation's factory situation. Out at 10 a.m.

-- Pending home sales come out at 10 a.m. Sales will be goosed by the $8,000 first-time home buyer credit, which expires at the end of next month. 10 a.m.

-- Construction spending. This is a gauge of how much companies are spending building stuff; more accurately, it's a gauge of whether they can get credit to do so. 10 a.m.

-- September auto sales, probably starting about noon and coming out all day. We'll see how sales rebound in the post-Cash for Clunkers era.

-- Frank Ahrens
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By Frank Ahrens  |  October 1, 2009; 8:48 AM ET
Categories:  The Ticker  | Tags: Ben Bernanke, auto sales, jobless claims, personal income  
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Comments

Another week with more than HALF A MILLION people losing their jobs. I just love this recovery. If Obozzo and his gaggle of tax cheating Czars keep this up, the only people with jobs will be those handing out unemployment checks. I didn't know that the "change" Obozzo promised involved everyone being on welfare.

Posted by: Bcamp55 | October 1, 2009 9:16 AM | Report abuse

Is the rise in personal spending adjusted for increased prices?

I think I've seen more than the stated increase at the gas staiton alone, which means personal spending has actually decreased.

Posted by: youmustbejoking1 | October 1, 2009 9:22 AM | Report abuse

A repost.
I Originally posted this in 2007, it seems apropos.

It always amazed and baffled me that one of the greatest of Scientists, Richard P. Feynman, could explain the most complicated topic known to man. That being Particle Physics, specifically Quantum Electro Dynamics. He could explain the subject in such a way that most human beings could have at least a fundamental grasp of the ideas presented. He was articulate and definitely inspirational. Contrast Feynmans brilliant way of explaining the astounding complexity of Particle Physics with Greenspans way of addressing the much less complicated and increasingly nebulas topic of economics, and it seemed like that later was more adapt at gibberish, as in unnecessarily pretentious and vague language. A psycho babble of the elite. Greenspan did this, time and time again at congressional hearing, while everyone looked on, hanging on to every nonsensical statement. Politicians who are in trusted to look out for the American people just sat by. They either new the gig or they were to stupid to catch on to the big scam. That makes them complicit or incompetent. Either way it's more than tragic, it's criminal. I remember viewing one congressional meeting recently. it concerned the real estate market. My Engineering colleagues and I were for years absolutely astounded by what we knew would be an inevitable collapse, the irrational greed could not be sustained. When Greenspan was asked about what he thought with respect to the real estate market, his response was he detected a bit of frothing. A bit of FROTHING! It seemed to us like a gross understatement, it was a gross understatement. And not just in the real estate arena, capitalism itself has become just one big pyramid scheme. Competition has become an oxymoron.

An update:
We kept hearing that it was all an unanticipated surprise. No one saw it coming. Not true! To a man, everyone of my Engineering colleagues and I saw it coming. In fact many people saw it coming. The news media certainly did not!. We had and still do have running jokes about the ineptitude of the Wall Street analyst. There's a lot of criticism directed at Obama now, by the very people who sat around and watched the debacle. They're great a pointing fingers and criticizing. Where were they during the impending crises. This is a decisive moment for action, but even now they're so preoccupied being virulent they can't even get to the problem. Nothing much has really changed, we're poised to see a repeat.

Posted by: morphylius | October 1, 2009 10:30 AM | Report abuse

Anyone wanna know why Repuglicans are dim wits? Read "BCamps" comments above about HALF MILLION people losing jobs in a week. Hey bozzo, first off this is the doing of your half retarded ex-prez G Bush and 2nd, we aren't losing 500,000 jobs a week. That would mean the entire US will be unemployed in a few years.

Posted by: rryan007 | October 1, 2009 10:32 AM | Report abuse

In a few more years the only jobs in this country will be government jobs.
All the corporations that own our government have moved their operations overseas.
In 10 more years the USA will be looking like N. Korea. Thanks to an educated and diligent electorate.

Posted by: brattykathyi1 | October 1, 2009 10:35 AM | Report abuse

The jobless rate s totally meaningless. It does not reflect those out of work who cannot find work anywhere. The actual number is more likely well over 12% and with winter setting in the number of jobless will increase because the outdoor jobs go away. There maybe a depression-recession but judging actual store prices you would be hard pressed to see any relief. Why is it that Wal-Mart can get almost instant price cuts on drugs and the Federal Government cannot? There might be a close connection between the drug-insurance companies and senator's like Hatch. Think maybe?

Posted by: KBlit | October 1, 2009 10:40 AM | Report abuse

how is that hope and change working for you dummys who voted for President ACORN. While obozo and the wookiee are big toof grinnin on the taxpayers dime in europe, unemployment is up, food stamp reciprients are over 35 million, no real growth in housing, etc.

mmm mmm mmm barack hussein obozo

Posted by: charlietuna666 | October 1, 2009 10:47 AM | Report abuse

youmustbejoking1 ... Great post. There is a good reason why physics is more reliable than economics. The laws of physics describe what God created, who never changes the rules and never lies. The laws of economics describe what men created, who constantly change the rules and do nothing but lie.

Posted by: penniless_taxpayer | October 1, 2009 3:25 PM | Report abuse

Oops ... I meant morphylius.

Posted by: penniless_taxpayer | October 1, 2009 3:28 PM | Report abuse

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