Jobless claims dip, consumer spending rises

New claims for jobless benefits dipped last week and consumer spending increased in November for a fifth straight month, reinforcing views of a solid economic growth pace in the fourth quarter. Further signs that the economy gained momentum as the year ended also were offered by other data on Thursday showing gains in orders for a range of long-lasting manufactured goods and in new home sales last month . “The data releases today support our estimate that GDP growth probably accelerated to between 3.5 percent and 4.0 percent annualized in the fourth quarter,” said Paul Ashworth, senior U.S. economist at Capital Economics in Toronto. Initial jobless claims fell 3,000 to a seasonally adjusted 420,000, the Labor Department said, matching economists’ expectations. A separate report from the Commerce Department showed spending rose 0.4 percent after increasing by an upwardly revised 0.7 percent in October. Economists polled by Reuters had expected spending, which accounts for about 70 percent of U.S. economic activity, to rise 0.5 percent last month after a previously reported 0.4 percent gain in October. Prices for U.S. government debt were trading down, while stocks on Wall Street were flat. The U.S. dollar was flat against a basket of currencies.