U.S. Economy Contracts: The U.S. economy declined by 0.5% in the first quarter of 2025, according to the final GDP report. This was a larger contraction than the previous estimate of -0.2%. The decline was primarily driven by increased imports ahead of tariffs and reduced government spending. However, growth in investment and consumer spending provided some offset.
Jobless Claims Trend Higher: Jobless claims continue to show a rising trend, particularly for those already receiving benefits. Initial weekly claims fell slightly by 10,000 to 236,000, but this figure remains elevated compared to earlier this year. More notably, continuing claims surged by 37,000 to 1.974 million, reaching the highest level since November 2021. Continuing claims have now been above 1.8 million for over a year and above 1.9 million for five consecutive weeks.