Initial applications for unemployment benefits tumbled 8,000 to 355,000 in the week ended November 3, compared to expectations for a decrease of 7,000 to 370,000. The four-week moving average edged higher 3,250 to 370,500.
The U.S. non-manufacturing sector kept growing in October, however, at a slower pace, due to a weaker domestic demand. The Institute for Supply Management said its leading indicator of economic health eased to 54.2 last month, down from 55.1 in September.
Federal Reserve Chairman Ben S. Bernanke said the Fed will take action to speed growth and a rebound in a housing market facing obstacles ranging from too- tight lending rules to racial discrimination.
The Federal Reserve's efforts to buy up assets to bring down long-term interest rates and spur the economy is very risky, Charles Plosser, the president of the Philadelphia Federal Reserve Bank, said Thursday.