Jobless claims are unchanged from last week, and come in line with expectations. Continuing claims came higher than expectations at 4,456K on expectations of 4,450K, with the previous print revised higher to 4,479K. Non-farm productivity much worse than expected, at -1.8% on expectations of 1.9, previously coming at -0.9%. Labor costs come at 1.1%, on expectations of 1.2%, a notable increase from the previous read of 0.2%. Knee jerk reactions by the market all around.
It appears the catch up in extended claims and EUC has finally arrived, as both numbers dropped a combined 340k in the week ended August 1, as the roll off from extended benefits once again takes precedence over the recent reactivation of the 99-week max by the administration.