While there is still plenty of economic data that engenders concern, two reports released this morning will be viewed as positive.
First, initial jobless claims for the week ending November 21 came in at 466,000, the lowest reading since October 11, 2008 and below the psychologically important 500,000 mark. In addition, for the first time in some time, the numbers for the previous week were revised lower (by 4,000).
Second, the Bureau of Economic Analysis Personal Income and Spending data showed a much-better-than expected increase in spending in October: +0.7% versus September. Expectations were apparently in the +0.3% area. Income was a bit better than expected, at +0.2% versus September with expectations in the +0.1% area.
Two positive data points published in one week -- a week that saw headlines such as "One in Four Borrowers Underwater" and "Early Data Suggest Suicides are RIsing" among others -- does not necessarily signal trend reversal, "happy days are here again" or some such. But analysts who have been pointing to jobs or signs of life from the consumer as linchpins to meaningful economic recovery (finally) have something to chew on.
