The U.S. economy unexpectedly grew by less than previously estimated in the third quarter of 2023, the Commerce Department revealed in a report released on Thursday.
The report said real gross domestic product jumped by 4.9 percent in the third quarter, reflecting a downwardly revision from the previously reported 5.2 percent surge. Economists had expected the pace of GDP growth to be unrevised.
The Commerce Department said the slower than previously estimated GDP growth primarily reflected a downward revision to consumer spending.
A separate report released by the Labor Department on Thursday showed a slight uptick by initial jobless claims in the U.S. in the week ended December 16th.
The Labor Department said first-time claims for U.S. unemployment benefits crept up to 205,000, an increase of 2,000 from the previous week’s revised level of 203,000.
Economists had expected jobless claims to rise to 215,000 from the 202,000 originally reported for the previous week.
Meanwhile, the report said the less volatile four-week moving average edged down to 212,000, a decrease of 1,500 from the previous week’s revised average of 213,500.
The Federal Reserve Bank of Philadelphia also released a report showing regional manufacturing activity unexpectedly contracted at an accelerated rate in the month of December.
The Philly Fed said its diffusion index for current general activity slid to a negative 10.5 in December from a negative 5.9 in November, with a negative reading indicating a contraction. Economists had expected the index to inch up to a negative 3.0.
Meanwhile, the report said most future activity indicators rose during the month, suggesting more widespread expectations for overall growth over the next six months.
At 10 am ET, the Conference Board is due to release its report on leading economic indicators in the month of November. The leading economic index is expected to decrease by 0.4 percent in November after falling by 0.8 percent in October.
The Treasury Department is scheduled to announce the details of this month’s auctions of two-year, five-year and seven-year notes at 11 am ET.