COMMENTARY

Claims for unemployment benefits dropped to the lowest level in seven months and housing starts exceeded forecasts, signaling improvement in the weakest areas of the U.S. economy. Applications for jobless benefits decreased 5,000 in the week ended Nov. 12 to 388,000, Labor Department figures showed in Washington. Fewer firings may signal that companies are closer to hiring more workers, reducing an unemployment rate stuck around 9 percent or higher for more than two years. At the same time, record-low mortgage rates and cheaper homes are helping to support the industry at the heart of the last recession. “Housing gauges are starting to see some turn,” said Carl Riccadonna. “Jobless claims are presenting a pretty solid corroboration of the view the economy is shifting into a higher gear. We’re likely facing an acceleration in the pace of hiring over the next few months.” Other reports today showed that manufacturing in the Philadelphia region expanded less than forecast in November and consumers’ views on the outlook for the economy improved.