Print

Weekly jobless claims drop below 500k; consumer spending up

By The Associated Press
Posted 9:17AM on Wednesday 25th November 2009 ( 14 years ago )
WASHINGTON - The number of newly laid-off workers filing claims for unemployment benefits fell more than expected last week to the lowest level in over a year while consumer spending in October showed a stronger-than-expected rebound.

The Labor Department says the number of people filing first-time claims for jobless benefits fell by 35,000 to 466,000. That was the lowest level for initial claims since the week of Sept. 13, 2008, and was far better than the 500,000 that economists had expected.

The number of workers receiving benefits also fell sharply, dropping 190,000, to 5.42 million, the lowest level for continuing claims since February.

The concern is that the big improvement will be temporary as the weak economy continues to push unemployment higher.

CONSUMER SPENDING

Consumers got back in the buying mood in October as their incomes grew modestly, an encouraging sign for the budding economic recovery.

The Commerce Department said Wednesday spending rose a brisk 0.7 percent last month, following a pullback in September when spending plunged by 0.6 percent.

It was the best showing since a big 1.3 percent jump in August when the government's now-defunct Cash for Clunkers programs enticed people to buy cars.

Incomes, the fuel for future spending, rose 0.2 percent for the second straight month.

http://accesswdun.com/article/2009/11/225023

© Copyright 2015 AccessNorthGa.com All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.