ECONOMY : Economists Dismiss Slight Rise in New Jobless Claims

The number of Americans filing new claims for unemployment benefits edged up by 4,000 during the week ending May 23, the Labor Department said Thursday.

At the same time, a Commerce Department survey showed that the nation’s businesses are planning a cautious 4.7% increase in spending for new equipment this year because of the slow-moving economic recovery.

Analysts dismissed the small advance in new jobless figures as insignificant and noted that the four-week average for jobless claims continued to improve, falling to the second-lowest level of the past 18 months.

California had the biggest decline in claims, dropping by 4,375, with the improvement attributed to fewer layoffs in the electronics and aerospace industries.

The decrease in California claims came despite the fact that there were 850 new claims attributed to the riots in Los Angeles.

Nationally, the weekly gain pushed initial claims for unemployment benefits to 407,000. That marked an increase from 403,000 the previous week, the lowest weekly figures in seven months.

The number was slightly more than economists had expected in view of the strengthening economy.

But even with the advance, the four-week average for claims declined to 410,750, the second-best showing since October, 1990.

Because week-to-week changes in jobless claims can be so volatile, economists prefer to focus on the four-week moving average.

They noted that the average claims level has now dropped significantly from the 450,000 mark, where it had been stuck for the first three months of the year.

Robert Dederick, chief economist of Northern Trust Co. of Chicago, said the slow improvement in jobless claims was consistent with the view that the economy is launched on a sustainable but modest recovery.

The government will report today on the unemployment rate for May, and Dederick said he was looking for it to remain at the 7.2% level and stay above 7% for most of the rest of the year.

The Commerce Department’s survey of thousands of companies in industries as diverse as manufacturing, public utilities and real estate showed that they intend to boost 1992 spending to $553.9 billion.

The survey, conducted in April and May, very slightly revises upward plans that the same companies reported between January and March for a 4.6% increase in plant and equipment spending.

Economists said the key point was that spending intentions are not being reduced.

The latest plans are an improvement over 1991, when investment spending fell for the first time in five years. But the spending plans fall below indications last December that investment would rise by 5.4% in 1992.