US Jobless Claims Tick Up, But Economic Outlook Improves

The number of Americans filing new claims for unemployment benefits rose slightly last week, indicating that the economy is regaining momentum as the year comes to a close. This follows recent data showing unexpected increases in retail sales and housing starts. Economists have revised their growth estimates for the fourth quarter as a result. The Federal Reserve has signaled that interest rates will remain steady and lower borrowing costs are expected in 2024. Despite some volatility in the claims data due to the holiday season, the labor market remains healthy, which is expected to prevent a recession next year. The economy added 199,000 jobs in November, and GDP growth in the third quarter was revised to 4.9%.