WASHINGTON — New claims for unemployment benefits unexpectedly fell last week, reaching the lowest level since April 2008 amid signs the economy picked up at the end of the year.
Initial jobless claims decreased by 4,000 to a seasonally adjusted 364,000 in the week ended Dec. 17, the Labor Department said Thursday.
A separate report by the government showed the economy was a little weaker in the third quarter than earlier thought because of a downward adjustment to consumer spending. Other signs, though, point to stronger growth in the final months of 2011, with holiday-shopping sales looking solid.
The index of leading economic indicators increased in November, according to the Conference Board, which said Thursday that its leading index advanced 0.5 percent for a seventh straight gain. And consumer attitudes seemed a bit brighter at the end of December. The Thomson Reuters/University of Michigan consumer sentiment index rose to 69.9 from the 67.7 reading earlier this month and an end-of-November reading of 64.1.
“It looks like the economy has picked up some steam and, most importantly, the labor market is firming,” said Joel Naroff, president of Naroff Economic Advisors.
Economists surveyed by Dow Jones Newswires had forecast new jobless claims would rise by 14,000 to 380,000. The decline carried claims to the lowest since the week ending April 19, 2008, and marked the third drop in a row.
Weekly figures are volatile, particularly during the holidays. Economists prefer to look at the four-week moving average of new jobless claims. Last week, it dropped by 8,000 to 380,250.
