The number of new jobless claims fell more than expected last week and retail sales increased in May for the first time in three months, but the positive data was balanced Thursday by the news that the number of people continuing to receive jobless benefits continued to rise. The U.S. Labor Department said Thursday that initial claims for unemployment benefits fell last week by 24,000 to a seasonally adjusted 601,000. Analysts had predicted a figure of 615,000. The four-week average of claims, which smoothes out fluctuations, fell to 621,750. That is a decline from a high of about 658,000 in early April. But the better-than-expected figures were accompanied by the news that the number of people claiming benefits for more than a week rose by 59,000 to more than 6.8 million – the highest figure on records dating to 1967. The department also revised last week's data on continuing claims. The new figures showed claims increased by 6,000, rather than dropping by 15,000, as originally believed. That means continuing claims have set records for 19 straight weeks. Meanwhile, the U.S. Commerce Department reported that retail sales rose for the first time in three months in May, increasing by 0.5 percent, in line with expectations. The demand was lead by auto dealerships and gas stations, which helped balance out a decline at department stores. It was the largest increase since sales rose 1.7 percent in January following six straight declines. Excluding autos, retail sales also grew 0.5 percent in May, better than the 0.2 percent gain that economists had expected.
