U.S. First-Time Enemployment Benefit Claims Pulled Back More Than Expected; U.S. Economic Growth Unexpectedly Surged

A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended December 14th.

The Labor Department said initial jobless claims fell to 220,000, a decrease of 22,000 from the previous week’s unrevised level of 242,000. Economists had expected jobless claims to dip to 230,000.

Meanwhile, the report said the less volatile four-week moving average crept up to 225,500, an increase of 1,250 from the previous week’s unrevised average of 224,250.

The Commerce Department also released a report showing the pace of U.S. economic growth unexpectedly surged by more than previously estimated in the third quarter.

The report said gross domestic product shot up by 3.1 percent in the third quarter, reflecting an upward revision from the 2.8 percent jump previously reported. Economists had expected the pace of growth to be unrevised.

The Commerce Department said upward revisions to exports and consumer spending offset a downward revision to private inventory investment and an upward revision to imports, which are a subtraction in the calculation of GDP.

Philadelphia-area manufacturing activity declined overall in the month of December, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current general activity slumped to a negative 16.4 in December from a negative 5.5 in November, with a negative reading indicating contraction. Economists had expected the index to climb to a positive 3.0.

Looking ahead, the Philly Fed said the survey’s broad indicators for future activity continue to suggest widespread expectations for growth over the next six months, although the diffusion index for future general activity plunged to 30.7 in December from 56.6 in November.

At 10 am ET, the National Association of Realtors is scheduled to release its report on existing home sales in the month of November. Existing home sales are expected to jump to an annual rate of 4.07 million in November after surging to a rate of 3.96 million in October.

The Conference Board is also due to release its report on leading economic indicators in the month of November at 10 am ET. The leading economic index is expected to edge down by 0.1 percent in November after falling by 0.4 percent in October.

At 11 am ET, the Treasury Department is scheduled to announce the details of this month’s auctions of two-year, five-year and seven-year notes.


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