At the same time, the acceleration of vaccination rates should support the recovery of the labor market.
The number of applications for unemployment benefits in the United States unexpectedly increased last week. Still, the labor market is gradually recovering as more businesses resume work to accelerate vaccination rates.
With an improved epidemiological situation and extremely flexible monetary and fiscal policies, the economy is set to show the fastest growth rate since 1984 this year. Other data released on Thursday showed that manufacturing activity in the mid-Atlantic region in March reached its highest level in almost 50 years.
The number of initial jobless claims for the past week increased by 45,000 to a seasonally adjusted 770,000, the Labor Department said. The data for the previous week was revised up to 13,000 higher than previously reported.
Economists polled by Reuters had forecast 700,000 applications.
Considering the state program for the self-employed, freelancers, and others who are not eligible for regular state programs, 1 million people applied for benefits last week.
Stock markets in the United States opened lower on Thursday. The dollar exchange rate against a basket of currencies rose. Treasury bond yields rose.
As of Wednesday morning, 113,037,627 doses of the COVID-19 vaccine had been administered and 147,590,615 doses distributed, according to the US Centers for Disease Control and Prevention. Accelerating vaccination rates should help strengthen the labor market.
Meanwhile, the Federal Reserve Bank of Philadelphia on Thursday. He said that the business environment index rose to 51.8 this month. This is the highest figure since 1973. For comparison, in February, it was 23.1. New orders and deliveries at businesses in the region, which spans eastern Pennsylvania, southern New Jersey, and Delaware, also rose sharply.
Strong industrial performance supports expectations that economic growth could reach 7 percent this year.
The Federal Reserve on Wednesday provided an updated forecast, predicting steady growth and higher inflation this year. Simultaneously, the head of the Federal Reserve again promised to maintain the base interest rate on one-day loans at around zero in the coming years.