US DATA REACT: From BNP: “Part of the recent deterioration in
initial claims is likely a result of adverse weather conditions, which
forced many workers out of a job, especially in the construction
industry. In addition, the heavy snow storms that pummelled the East
Coast in the week of February 13 caused a shut-down of government
offices during that week. As a result, unemployed workers who would have
applied to receive unemployment benefits during that week were unable to
do so and the backlog of application was likely processed during the
week of February 20, pushing claims higher. In spite of these temporary
factors, the recent deterioration in unemployment claims does not bode
well for labour market prospects. In particular, initial claims remain
well above the 400k to 425k range which has historically been consistent
with a flat reading on non-farm payrolls.”
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