Weekly jobless claims fall 7,000 to 227,000
Continuing claims drop 7,000 to 1.864 million
Retail sales jump 1.0 in July; core sales gain 0.3

WASHINGTON, Aug 15 Reuters The number of Americans filing new applications for unemployment benefits dropped to a one monthlow last week, suggesting an orderly labor market slowdown remained in place, and dashing financial market hopes that the Federal Reserve could cut interest rates by 50 basis points next month.

The economy39;s resilience was reinforced by other data on Thursday showing retail sales increased by the most in nearly 112 years in July. Investors have been on edge after a jump in the unemployment rate to a near threeyear high of 4.3 in July sparked fears that the economy was either in recession or nearing a downturn, concerns not shared by most economists.

Fed officials need not worry themselves to death about the outlook because the downside risks to the economy are fading fast with fewer job layoffs and robust consumer spending, said Christopher Rupkey, chief economist at FWDBONDS. The economy is not going off the rails.

Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 227,000 for the week ended Aug. 10, the Labor Department said. Economists polled by Reuters had forecast 235,000 claims for the latest week.

The second straight weekly decline erased the increase in late July, which had boosted claims to an 11month high.

Claims had risen last month, blamed on temporary…