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US economy shrinks 5% in Q1, claims drop to 2.1M

US economy shrinks 5% in Q1, claims drop to 2.1M

U.S. data released on Thursday showed that the U.S. economy dropped 5 percent in the first quarter, while the initial; jobless claims retreated to 2.1 million last week.

The world’s biggest economy reported a worse than forecast contraction in the January-March quarter on annual basis, compared to both preliminary and estimates of 4.8 percent fall.

On the other hand, the initial jobless benefits in the week ended May 23 totaled 2.12 million, down from 2.45 million a week before. That came slightly higher than forecasts of 2.1 million.

Over a 2 1/2-month period, the claims totaled 40 million, but the reading continued to decline, while continuing claims, slipped to 21.1 million for the week through May 16, the first fall during the pandemic.

Another report showed that U.S. durable goods orders for April dropped 17.2 percent, from a revised of -14.7 percent.

As of 12:52 GMT, the dollar index traded lower for a third straight session at 98.80, hovering near its lowest level since March 30.

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