Jobless claims and equipment spending data point to a slowing economy

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    While first-time applications for unemployment benefits dropped last week across the nation, the number of people on jobless rolls jumped to a 30-month high in mid-June, suggesting labor market conditions may be easing amid slowing economic growth, Reuters reports. 

    Data released Thursday showed business spending on equipment declined last month, while a slump in exports pushed up the goods trade deficit. 

    The latest data coupled with the sharp slowdown in economic growth in the first quarter increases the probability of the Federal Reserve cutting interest rates in September.

    “The U.S. economy is on track for a soft landing, just what the Fed wants to see,” says Sal Guatieri, a senior economist at BMO Capital Markets.

    Reuters has the full story.