The number of Americans filing new applications for unemployment benefits fell to a five-month low last week and consumer spending increased more than expected in September, showcasing the economy's strength heading into the final stretch of 2024 and just days before next Tuesday's presidential election. Though prices pushed higher last month, inflation is firmly on a downward trend, with other data on Thursday showing labor costs posting their smallest gain in more than three years in the third quarter. The data likely keeps the Federal Reserve on track to cut interest rates next week and possibly in December.
Americans head to the polls to choose Democratic Vice President Kamala Harris or Republican former President Donald Trump as the country's next president. Polls show the race is a toss-up. Despite the economy's strong performance, high food and housing costs have caused angst among households. "Consumers may say they're downbeat, but spending looks to be unfazed by a moderating labor market and still-high prices," said Shannon Grein, an economist at Wells Fargo. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 216,000 for the week ended Oct. 26, the lowest level since May, the Labor Department said.
Source: Reuters