Weekly jobless claims fall 12,000 to 216,000
Continuing claims drop 26,000 to 1.862 million
Consumer spending increases 0.5 in September
Core PCE price index rises 0.3; up 2.7 yearonyear
Labor costs post smallest gain in over three years in Q3
WASHINGTON, Oct 31 Reuters The number of Americans filing new applications for unemployment benefits fell to a fivemonth low last week and consumer spending increased more than expected in September, showcasing the economy39;s strength heading into the final stretch of 2024 and just days before next Tuesday39;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 country39;s next president. Polls show the race is a tossup. Despite the economy39;s strong performance, high food and housing costs have caused angst among households.
Consumers may say they39;re downbeat, but spending looks to be unfazed by a moderating labor market and stillhigh 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…