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US economy shrinks 5% in Q1, claims surpass forecasts

US economy shrinks 5% in Q1, claims surpass forecasts

U.S. data released on Thursday confirmed that the U.S. economy dropped 5 percent in the first quarter, while the initial jobless claims soared nearly by 1.5 million last week.

The world’s biggest economy reported a contraction of 5 percent in the January-March quarter on annual basis, similar to both preliminary and analysts’ estimates.

On the other hand, the initial jobless benefits for last week totaled 1.48 million, down from 1.54 million a week before. That came slightly higher than forecasts of 1.32 million.

Americans have lost jobs since mid-March, but today’s reading marked the 12th straight weekly decline.

The continuing claims showed some improvement as it slipped from 20.289 million to 19.522 million.

Another report showed that U.S. durable goods orders for May jumped 15.8 percent from a revised of -17.7 percent, beating forecasts of 10.3 percent surge.

As of 12:52 GMT, the dollar index traded higher for a second straight session at 97.48, yet retreated slightly from the session’s high of 97.57.

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