Jobless claims totaled a seasonally adjusted 218,000, down 14,000 from the prior week’s upwardly revised figure and significantly less than the consensus estimate for 235,000. Gross domestic product posted a gain of 3.8% in the second quarter, up half a percentage point from the prior estimate due to an upward revision to consumer spending. Spending on long-lasting items such as airplanes, appliances and computers increased 2.9% in August, compared with the forecast for a decline of 0.4%
Initial claims for unemployment insurance were well below expectations last week, helping to douse caution at the Federal Reserve and elsewhere that the labor market is in danger.
First-time filings for the week ended Sept. 20 totaled a seasonally adjusted 218,000, down 14,000 from the prior week’s upwardly revised figure and significantly less than the Dow Jones consensus estimate for 235,000, the Labor Department reported Thursday.
Continuing claims, which run a week behind, were little changed, falling 2,000 to 1.926 million.
The release comes just a week after the Federal Reserve voted to lower its