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Published: Thursday 10 October, 2013

cheap shoes cheap shoes ?Could it be the economy is really getting better

Financial information firm Markit on Thursday said its preliminary Purchasing Managers Index for manufacturing rose to 56.1 this month, its best showing since March 2011. A reading above 50 indicates expansion.

A separate report from the Labor Department showed initial claims for state unemployment benefits fell by 5,000 to 330,000, the lowest since January 2008 when the 20072009 recession had just begun.

Together, the data suggest the economy entered the new year with some underlying momentum despite an ongoing political battle in Washington over fiscal policy.

The economy is structurally doing a little bit better, said Michael Strauss, an economist at Commonfund in Wilton, Connecticut.

Analysts polled by Reuters had expected Markits flash factory gauge to slip and looked for claims to rise to 355,000. stocks to rise, reversing early declines caused by disappointing revenues reported by Apple Inc. Betterthanexpected economic news from the euro zone and China also supported stocks.

Economists have cautioned about reading too deeply into this months figures on jobless claims, which tend to be volatile around this time of the year because of large swings in the model the government uses to iron out seasonal fluctuations.

Still, claims have fallen for two straight weeks, suggesting employers do not yet see tax hikes enacted this month as a big threat to consumer demand.

A fourweek moving average for new cl cheap shoes aims, meant to provide a better sense of underlying trends, fell 8,250 to 351,750, the lowest since March 2008. Treasury debt prices fell.

Claims are now at roughly the same level they were in much of 2006 and 2007. They started trending higher around December 2007, the month the recession began.

However, while employers have pulled back cheap shoes on layoffs, they have only added jobs at a lackluster pace.

Analysts polled by Reuters expect the governments employment report due on February 1 will show 165,000 jobs were added to payrolls this month, up from 155,000 new cheap shoes positions in December. The unemployment rate is expected to hold steady at 7.8 percent.

Like the claims data, Markits factory report also offered support for the idea that the labor market recovery was gaining traction with new jobs in the sector being created at the fastest pace in nine months.

A Markit subindex showed factory output grew at its fastest pace since March 2012, while new orders also rose. The new orders gauge hit 57.7, its highest level since May 2010.

It is the domestic market that is clearly providing the main impetus to the upturn, said Markit chief economist Chris Williamson.

Aggressive monetary stimulus from the Federal Reserve and a lastminute deal by Congress to reduce the size of the tax hike gave a boost to business confidence, Williamson said.

A third gauge of economic health released on Thursday also beat analysts forecasts. The private Conference Boards Leading Economic Index gained 0.5 percent to 93.9 last month, pointing to an improvement in growth. cheap shoes