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.
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