WASHINGTON (AP) — Fewer Americans likely sought unemployment benefits last week, potentially reversing a big gain the previous week. Weekly unemployment applications are typically volatile in July.
Economists forecast that weekly applications fell 20,000 to a seasonally adjusted 340,000, according to a survey by FactSet. That would follow an increase of 16,000 to 360,000 in the previous week.
The Labor Department will release the report at 8:30 a.m. EDT Thursday.
July can be a tricky time for the weekly unemployment benefit applications data, leading most economists to expect volatile readings this month.
Automakers typically shut down their factories for two weeks in early July to prepare them for new models. School systems have also closed. Those factors probably contributed to a jump in temporary layoffs two weeks ago.
Still, the longer-term trend is improving. Applications have declined almost 4 percent since the beginning of the year, evidence that companies are laying off fewer workers.
At the same time, job gains have accelerated. Employers added an average of 202,000 jobs a month in the first half of the year. That's up from an average of 180,000 in the previous six months.
Employers added 195,000 jobs in June and revisions showed 70,000 more jobs were added in April and May. The unemployment rate stayed at 7.6 percent last month but is down from 8.2 percent a year earlier.
Despite the gains in hiring, economic growth has been weak. Most economists expect growth slowed in the April-June quarter to an annual rate of 1 percent or less, down from a tepid 1.8 percent rate at the start of the year. That would mark the third straight quarter of growth below 2 percent.
Many economists are hopeful that growth will rebound in the second half of the year.
Recent reports have painted a mixed picture. Americans bought more cars, clothes and furniture in June, but cut back retail spending almost everywhere else. Excluding purchases in the volatile categories of autos, gas and building materials, retail sales rose at the slowest pace since January.
Meanwhile, factory output grew in June for the second straight month, a separate Fed report said, a sign manufacturers are recovering from a slow start to the year.
More hiring could help the economy grow faster later this year by increasing the number of Americans earning paychecks. That could fuel more consumer spending and overall growth.
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