By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
Jobless stats suggest strong national economy
Placeholder Image
WASHINGTON — The number of newly laid off people signing up for jobless benefits rose last week, suggesting that employment conditions, while softening a tad, still remain good.
The Labor Department reported Thursday that new applications filed for unemployment insurance increased by a seasonally adjusted 7,000 to 316,000 for the week ending Aug. 4. The increase left claims at their highest point since late June.
Economists were predicting claims would be lower, around 310,000 for last week.
Still, claims are lower now than they were a year ago, when they stood at 319,000.
In other economic news, the back-to-school shopping season had a disappointing start in July as people turned cautious amid turmoil on Wall Street, harder-to-get credit and the worsening housing slump.
Merchants reported sluggish monthly sales results, with the weakest performers being mall-based apparel chains, particularly teen merchants like Pacific Sunwear of California Inc. and Wet Seal Inc. Wal-Mart Stores Inc. , the nation’s largest retailer, posted a slim gain but warned that its increased discounting is hurting profit margins.
Consumer spending is a major shaper of overall economic activity. Individuals tightened their belts in the second quarter and are expected to be subdued through the current July-to-September period, analysts said.
Stocks plunged as fresh credit fears overwhelmed investors. The Dow Jones industrial tumbled nearly 172 points in morning trading.
On the labor market front, other recent barometers suggest some cooling in hiring, partly reflecting the toll of the sour housing market and struggles in the auto industry.
The past week the government reported that the nation’s unemployment rate nudged up to 4.6 percent in July, a six-month high. New job creation also slowed.
Employers increased payrolls by 92,000 last month, down from 126,000 in June, the government reported. It marked the fewest add-ons in a month since February.
In Thursday’s layoffs report, the four-week moving average of new claims, which smooths out week-to-week volatility, rose last week to 307,750, an increase of 1,750 from the prior week. It was the highest level since July 21.
The number of people continuing to collect unemployment benefits went up by 39,000 to 2.56 million for the work week ending July 28, the most recent period for which this information is available. That was the highest since early July.
Federal Reserve Chairman Ben Bernanke and his central bank colleagues on Tuesday said they expect the labor market and the national economy to hold up to strains from Wall Street turbulence, tightening credit conditions and the housing slump.
They predicted that the economy would expand at a moderate pace in the months ahead “supported by solid growth in employment and incomes.”
Against this backdrop, Fed policymakers kept an important interest rate at 5.25 percent, where it has been for more than a year.
After nearing stalling in the first three months of this year, the economy rebounded in the April-to-June quarter, growing at a solid 3.4 percent pace. Growth is expected to be slower through the rest of this year, clocking at a pace of around 2.5 percent.

On the Net:
Unemployment initial claims: http://www.doleta.gov/
Sign up for our e-newsletters
GPA grows trade, market share
Intermodal volume up 20 percent
port photo
Rubber tired gantry cranes handle cargo at the Chatham Intermodal Container Transfer Facility at the Port of Savannah. The Georgia Ports Authority's Mason Mega Rail project will double rail lift capacity to 1 million containers per year by 2020 - photo by Provided

The Georgia Ports Authority achieved 14 percent growth in March container volumes, moving 355,208 20-foot equivalent unit (TEU) containers.

From July 2017 to March, TEU container trade grew by 9 percent, or 255,786 additional units for a total of 3.08 million, a new record for Savannah.

"Savannah's continued strength is a reflection of our customers' commitment, Georgia's leadership, and the many dedicated service providers, GPA employees and ILA members who come together every day to achieve great things," said GPA Executive Director Griff Lynch. "March marked our 17th consecutive month of business expansion thanks, in part, to a strong economy and growing market share."

Intermodal rail volumes jumped by 20 percent in March and 15.4 percent for the fiscal year to date, for a total of 318,454 containers handled over nine months – another record for the GPA.

"As the numbers show, our rail cargo is growing at a faster pace than our overall trade," GPA Chairman Jimmy Allgood said. "This is important because rail is playing a key role in our responsible growth strategy. We anticipate our rail infrastructure investments to take 250,000 trucks off the road each year by 2020."

The GPA recently broke ground on its Mason Mega Rail Terminal, on which the Port of Savannah will build 10,000-foot unit trains within its own footprint. From the expanded rail infrastructure at Garden City Terminal, Class I rail providers CSX and Norfolk Southern will provide direct rail service to major Southeast and Midwestern markets from Memphis to St. Louis, Chicago to Cincinnati.

An added benefit is that the Mason Mega Rail project will move all rail switching on terminal – improving vehicle traffic flow around the port.

In August, the GPA will open its Appalachian Regional Port in Murray County. Located in an industrial belt, including the production and export of carpet and flooring, automobiles and tires, the ARP will provide an alternative to all-truck transit to Northwest Georgia.

Each round-trip container moved via the Appalachian Regional Port will offset 710 truck miles on Georgia highways.

March was also a strong month for roll-on/roll-off auto and machinery units at the Port of Brunswick and Ocean Terminal in Savannah. Colonel's Island Terminal in Brunswick handled 66,144 cars, trucks and tractors, while Ocean Terminal added 4,050, for a total 70,194, a 17.2 percent increase.

"The global economy is thriving and our volumes are following suit," Lynch said. "As existing accounts grow their footprint in the expanding auto facility in Brunswick, Georgia's competitive logistical advantages are drawing additional business across all of our docks."

Lynch noted that for the fiscal year to date, Mayor's Point breakbulk terminal in Brunswick grew by 44 percent (34,515 tons) to reach 112,728 tons of forest products. At East River Terminal, bulk cargo expanded by 34 percent July-March (189,918 tons) for a total of 750,384 tons.

Latest Obituaries