This weeks unemployment numbers, though bad, were not the big story. The big story was the revisions from last weeks number, but we'll get to that. Initial Unemployment Claims is a measure of the number of persons filing for unemployment benefits for the first time in the prior week. It is an indicator of economic health as consumer spending tends to suffer from increasing numbers, which impacts the economy as a whole. The forecast this week called for a number of 379k, but the actual headline number was 388K. Again, that is not the big story. The prior weeks 382k headline number was revised to 394k, that is a difference of a 12k error, marking one of the largest revisions I have seen since I started tracking (refer to revisions delta chart below).
This is one of the largest revisions I have seen since I have been tracking this, with this size of revision, making a guesstimation of the revision is tough.
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