Jobless Claims Fall To Lowest Level Since January
The total number of workers asking for unemployment benefits in the U.S. is back to a reading below 200,000, a level unseen in nine months.
Initial claims for the week ended Sept. 30 dropped to a seasonally adjusted 198,000 from a revised 211,000 in the previous period, the smallest number since the third week of January, the Labor Department said in a statement Thursday.
The four-week moving average fell to 205,750 from 206,750, according to the report.
The numbers indicate that the U.S. labor market remains heated, which helps boost consumer confidence. Other reports released earlier this week also pointed to strength in the economy.
Retail sales rose 0.7% in September, beating expectations of a 0.3% gain. As consumers keep shopping, manufacturers keep the machines running. Industrial production rose 0.3% last month, also above economists' estimate of a 0.1% gain.
Recent surveys conducted by Mastercard and Deloitte forecast that consumers are willing to increase their spending this holiday season.
A stronger economy could make it more difficult for the Federal Reserve to pause its interest-rate hiking cycle. The Fed maintained the US benchmark rate in the range of 5.25% to 5.50% on Sept. 20, the highest level in 22 years.
Fed Chair Jerome Powell may give indications of his next moves when he speaks about economic outlook at an event in New York at noon EST.
The Fed's next interest rate decision is scheduled for Nov. 1.
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