Weekly Jobless Claims Lower Than Expected, Suggesting Labor Market Strength: Wall Street Set For Higher Open

The U.S. economy expanded by 3% in the second quarter, according to the third estimate released Thursday, up from the 1.4% growth seen in the first quarter and representing an no change from the government’s second estimate.

This outcome continues to reflect the strength of the U.S. economy, marking the eighth consecutive quarter of growth.

In a separate report released Thursday, initial jobless claims for the week ending Sept. 21 came in slightly below expectations, suggesting some improvement in labor market conditions.

Q2 GDP Report (3rd Estimate) Key Highlights

• The U.S. real gross domestic product (GDP) grew at an annualized rate of 3% in the second quarter, upwardly revised from the initial estimate of 2.8% and matching the second estimate of 3%.
• The Personal Consumption Expenditure (PCE) price index, a key measure of inflation, slowed from 3.4% in the first quarter to 2.5% in the second quarter , staying flat with the prior estimate.
• Excluding food and energy, the core PCE price index eased from 3.7% in the first quarter to 2.8% the second quarter, remaining unchanged from the previous estimate.
• The acceleration in real GDP during the second quarter was primarily driven by an increase in private inventory investment and a pick-up in consumer spending.

Read Also: GDP Growth Upwardly Revised In Q1 But Consumer Spending Weakens, Continuing Jobless Claims Hit Nearly 3-Year Highs: Thursday’s Economic Digest

Latest Jobless Claims Report

• Initial jobless claims totaled 218,000 for the week ending Sept. 21, down from the upwardly revised 222,000 the previous week and below the figure of 224,000 claims that economists were expecting.
• The four-week moving average of weekly jobless claims, which smooths out weekly volatility, was 1,835,750, a decrease of 6,500 from the previous week’s revised average.

Market Reactions

The U.S. dollar index (DXY) was down 0.05% following the economic data releases.

In Thursday's premarket trading, futures on major U.S. indices were moving higher. S&P 500 futures were up 0.81%, Nasdaq 100 futures were trading 1.55% higher and Dow Jones Futures were up 0.35%.

Read Now:

• US Dollar, Oil Prices, Tech Stocks Rise As GDP Roars By 3% In Q2; Bonds, Yen Slip As Bets For Large Rate Cuts Ease

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