The number of U.S. workers filing claims for initial jobless benefits increased slightly more than expected in the latest week, with first-time jobless claims rising to 371,000 in the week ended May 10 from 365,000 for the prior week.
Meanwhile, a gauge of manufacturing in New York State contracted in May even though its measure of inflation hit a record high, the New York Federal Reserve said. And US industrial production fell 0.7% in April to a three-year low.
"These numbers are not good news. We are in an elevated unemployment period because of tight credit, higher oil prices, inflation hurting consumers," said Kurt Karl, chief U.S. economist at Swiss Re in New York. "To me, it just continues to deteriorate. It's just grinding higher in unemployment."