Applications for US unemployment aid rise to 6-month high

WASHINGTON (AP) — The number of people seeking unemployment benefits rose last week to the highest level since July, though applications remained at historically low levels.

Global financial markets have plunged since the year began over fears that world economic growth is slowing by more than most analysts expected.

Applications for unemployment aid are a proxy for layoffs and can indicate whether businesses are sufficiently nervous about the economy to cut jobs.

Even with all the gloom in financial markets, consumers are still willing to splash out on restaurant meals, autos and travel, providing crucial support to the economy.