Resilient US economy's GDP revised upwards to 3% amid lower job claims
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The news: The US economy showed new signs of resilience, with weekly initial jobless claims data falling and second-quarter GDP growth revised higher, powered by robust consumer spending.
The numbers: US jobless claims fell by 2,000 to 231,000 for the week ending August 24, which was slightly below the expected 232,000, according to the Labor Department.
The four-week average, which smooths out weekly volatility, dropped by 4,750 to 231,500, while the number of people receiving benefits rose slightly to 1.868 million.
Meanwhile, the Bureau of Economic Analysis revised GDP growth for the April to June period upwards to 3%, from a preliminary estimate of 2.8%.
The revision showed Americans are spending a lot more than previously estimated. However, that was offset by downward revisions in business spending, residential investment, and government outlays.
The context: Claims remain historically low, even as they have increased since from an average of 213,000 per week in May.
The data shows the US economy continues to be resilient, despite high interest rates and a slowly cooling labour market, setting the stage for a cautious but likely easing of monetary policy by the Federal Reserve.
Treasury yields increased, the S&P 500 remained higher and the dollar strengthened following the report, Bloomberg data showed.
The sources: Bureau of Economic Analysis , US Department of Labor , Bloomberg, Reuters
