Initial Claims for unemployment benefits rose 6,000 to 371,000 last week. Continuing claims rose 28,000 to 3.06 million. The labor market continues to weaken as domestic demand slows in response to the crumbling housing market. Indeed, Industrial Production fell 0.7 percent in April and the Empire State Manufacturing Index indicated contraction in the region in May as consumers and businesses slow spending amid an uncertain economic environment. The one bright spot for the manufacturing sector is exports, which are getting a boost from the falling dollar.
