U.S. jobs, price data point to economic recovery

New data released Thursday hinted at an improving U.S. economy as jobless claims fell and producer prices rose in the most recent reports.

The number of U.S. workers asking for employment benefits for the first time slid by 24,000 for the week ended April 17.

On a seasonally adjusted basis, 456,000 Americans sought first-time EI assistance in that week. During the previous four-week period, the average number of initial benefits claimants stood at 460,000.

The one-week drop was the first seven-day period in the past three in which the initial jobless claims figure — which economists use as a proxy for overall economic health — fell.

The latest U.S. reduction also was the best showing for the Department of Labor's well-watched indicator since the end of January when initial claimants tumbled more than 50,000.

In addition, American companies received a bit of good economic news in the form of March's producer price index (PPI).

The index for the prices of finished goods, which uses 1982 as its base, rose 0.7 per cent in March compared to February.

Better still, the same index gained six per cent in the third month of 2010 versus the previous March.

The rise represented "... their largest year-over-year gain since an 8.8 per cent rise in September 2008," according to the department in a news release.

Generally, rising prices, especially for goods heading out the factory gate, indicates improving demand among final consumers and often indicates a strengthening of the private sector's overall revenue picture.