US Jobless Claims Tick Up, Q3 GDP Growth Revised Down

The number of Americans filing new claims for unemployment benefits rose slightly last week, but the data still suggests underlying strength in the economy. The claims data, although volatile during the holiday season, remain consistent with a healthy labor market. The Federal Reserve recently signaled that the historic monetary policy tightening is at an end and lower borrowing costs are expected in 2024. The economy added 199,000 jobs in November, and GDP growth in the third quarter was revised down to 4.9% from the previously reported 5.2%. Despite some fading momentum in the final months of the year, growth is expected to be enough to avoid a recession.