The Bureau of Labor Statistics reported that 2,000 fewer workers filed initial claims for unemployment last week then during the previous week. About 370,000 people filed initial claims last week. 

The number of people who continue to remain on unemployment dropped by 29,000 to about 3.26 million. The decrease was in line with economists’ expectations, but less than past decreases.  

A report released by the Commerce Department today showed the demand for business equipment slowed in April, as it did in March. Demand for non-military items excluding aircraft decreased 1.9 percent in April after falling 2.2 percent in March.

A decline in demand means businesses are worried about how strong the economy is coming back and are wary about investing back into their business, according to Bloomberg.

Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd., told Bloomberg that he believes the slowdown could also be attributed to the expiration of a 100 percent tax deduction for business equipment at the end of 2011. The deduction is now 50 percent, according to Bloomberg.