U.S. jobless claims down, consumer spending up

The number of Americans filing new claims for unemployment benefits dropped to a 15-year low last week of 262,000 – the lowest reading since April 2000, according to the U.S. Department of Labor.

The week ended April 25 represents the eighth consecutive week such claims remained below the 300,000 mark, the typical indicator of a strengthening labor market.

The Commerce Department reported consumer spending rose 0.4 percent last week, boosted by households increasing high-dollar purchases like automobiles. Adjusted for inflation, consumer spending in March rose 0.3 percent after flat lining in February.

Although a steady increase in spending is likely to boost economic activity in the second quarter, Reuters cautions inventory overhang, a decrease in energy investment and a robust dollar may limit growth.

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