Weekly jobless claims rose 4,000 to 236,000 for the week ending July 2. California and Puerto Rico reported the highest insured unemployment rates of 1.9% for the week ending June 18.
The Federal Reserve policy committee reiterated its commitment in bringing inflation down close to 2% and favored restrictive policy stance and future higher rate hikes.
Personal income and disposable personal income rose 0.5% and personal consumption expenditures increased 0.2% in May. Personal consumption expenditures index increased 6.3% on an annual basis.
Total industrial production increased 0.2% in May but manufacturing output declined 0.1%. The total production increased every month of the year so far.
Housing starts in May declined 14.4% to 1.55 million annual rate but completions rose 9.1% from April. Housing stars dropped to a 13-month low on rising construction costs and sharply higher mortgage rates.
The Federal Reserve lifted the key benchmark rate by 75 basis points and signaled its commitment to fight inflation with faster rate hikes. The policy committee also lowered the current year economic growth estimate to 1.7% from 2.8%.
Consumer prices rose at the fastest pace in May since December 1981 as inflation seeped deeper in all activities of the economy. The broad price increases are showing no signs of abating, putting more pressures on policy makers.
Total mortgage activities declined to 22-year low after rates rose to 5.4%. The index dropped 6.5% in the last week from the previous week but plunged 55% from a year ago.
