by Calculated Risk on 10/05/2006 11:37:00 AM

Occasionally I like to look at initial weekly unemployment claims.

Click on graph for larger image.

The Department of Labor announced weekly unemployment claims decreased to 302K last week.

The graph shows the 4 week moving average for unemployment claims. There is still no evidence of a significant slowdown from this data series.

And the AP reports: Retailers Report Strong Gains for September, Aided by Cooler Weather and Falling Gas Prices

Shoppers, encouraged by cooler temperatures and falling gasoline prices, went on a shopping spree in September, giving many retailers better-than-expected gains and lifting the industry's spirits two months before the holiday season. A notable exception was Wal-Mart Stores Inc.

As retailers reported their results Thursday, the winners crossed many categories, with department stores and teen merchants including Bebe Stores Inc., J.C. Penney Co. Inc. and Federated Department Stores Inc. among the leaders.

"This is a really strong month," said Ken Perkins, president of RetailMetrics LLC, a research firm in Swampscott, Mass. "The back-to-school momentum was strong, weather was really favorable and the big plummet in gasoline prices certainly put more disposable money into consumers' wallets."

Of the first 44 retailers to report September results, 32 topped analysts' expectations and 12 fell short, according to Thomson Financial.

Yesterday Fed Vice Chairman Donald Kohn had some comments on the housing market, and he noted:

"To date there is little evidence that this correction in the housing market has had any significant adverse spillover effects on other parts of the economy."

I agree - so far the impact of the housing bust on the general economy has been minimal. I will post my take on Kohn's housing comments later today.