US Jobless Claims to rise by another 5.5 million – Goldman Sachs

Economists at Goldman Sachs estimate a 5.5 million jump in the Initial Jobless Claims, as the report is slated for release at 1230 GMT later on Thursday.

Key quotes

“Anecdotal evidence and the sky-high jobless claims numbers” to back its unemployment forecast. Nearly 3.3 million Americans filed first-time claims for unemployment compensation in the most recent week.

Predicts another 5.5. million to be counted when the next report comes out Thursday.

This not only means deeper negatives in the very near term but also raises the specter of more adverse second-round effects on income and spending a bit further down the road.

On the other hand, both monetary and fiscal policy are easing dramatically further, which will tend to contain these second-round effects and add to growth down the road.”

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