US economic figures provide hope of recovery

Economists say the latest US unemployment figures provide hope that the economy is about to recover.

Analysts also believe the technology meltdown could be coming to an end.

The US Labour Department's weekly claims for unemployment insurance rose 7,000 to 392,000 for the week ending December 22.

This means jobless claims have stayed below the 400,000 level for three straight weeks, the first time since August.

Mike Moran, chief economist at Daiwa Securities America also highlights the relatively small rise in the continuing claims level, which had risen steadily since summer. Continuing jobless claims for the week ending December 15 rose 23,000 to 3.7 million.

Mr Moran says the level of claims is still high, but shows a "marked improvement". He added: "The numbers are signalling some improvement in the labour market."

Durable goods orders fell 4.8% last month, the Commerce Department reports, although excluding the defence sector orders rose for the second straight month.

Mr Moran says orders for computers and electronic goods have now risen above the August level, signalling the high-technology sector may have turned a corner.

Consumer confidence in the US also rose sharply this month following three months of dramatic decline.

The New York-based Conference Board's Consumer Confidence Index rose to 93.7 this month from a revised 84.9 in November. Analysts were expecting a reading of 83.