Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬: More Americans than expected made new claims for jobless benefits.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ apparently believe that the case for a double-dip recession in developing economies is gaining traction after more negative data emerged from the US.
The number of Americans filing first-time claims for unemployment benefits rose by more than expected in the week ending February 20th and, some suggest, proves that the much-vaunted V-shaped recovery was always a mirage.
The Labor Department figures were accompanied by similarly negative numbers from the Commerce Department which showed that durable goods orders excluding transportation unexpectedly fell 0.6 as companies scaled back orders for equipment as they assessed demand in the months going forward after boosting production in the second half of 2009 to re-stock inventories.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ analysts suggest that the effects of government spending and initiatives are limited and that companies will continue to demonstrate caution in the absence of demand from both businesses and consumers.
There is a growing clamor for additional stimulus to be injected into the US economy and this,
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ analysts believe, would be highly inflationary and could result in a loss of confidence in Americaâ€˜s ability to rein in its spiraling deficits.