U.S. Economy on Steady Path: Unemployment Claims Hit Five-Month Low

The U.S. economy shows resilience with a five-month low in unemployment claims and rising consumer spending. Despite inflation concerns, labor costs see minimal growth, positioning the Federal Reserve for potential interest rate cuts. The labor market remains stable, albeit impacted by recent hurricanes and strikes.

The number of Americans filing new claims for unemployment benefits hit a five-month low last week, marking a positive economic indicator ahead of the presidential election. Consumer spending also surpassed expectations in September, further underlining economic resilience amid inflationary pressures.

Amid the strong economic performance, U.S. households continue to grapple with high food and housing costs. Meanwhile, the Federal Reserve is on track to cut interest rates, supported by declining labor costs in the third quarter, showcasing a firming economic stance.

Increased consumer spending is bolstered by a rise in household net worth due to stock market rallies and housing price hikes, contributing significantly to U.S. economic activity. The labor market endures despite disruptions from hurricanes and strikes, highlighting its underlying robustness.

(With inputs from agencies.)