Claims have "moved sideways most of the year"
- Tom Porcelli, chief U.S. economist at RBC Capital Markets LLC
The number of Americans claiming for unemployment benefits was unchanged at 374,000 in the week ended August 25 from the week before, said the Department of Labor on Thursday.
Claims have "moved sideways most of the year," said Tom Porcelli, chief U.S. economist at RBC Capital Markets LLC in New York. "Hirings are what's lacking at this point."
Also Thursday, the Bureau of Economic Analysis said personal spending increased in July for the first time in three months. Purchases climbed 0.4 per cent, after being little changed in June.
"The consumer's situation is slowly improving, but the job growth isn't there to support really big gains in future spending," said Gus Faucher, a senior economist at PNC Financial Services Group Inc. in Pittsburgh.
The Standard & Poor's 500 declined 0.78% to 1,399.48. The Dow Jones Industrial Average retreated 0.81%, or 106.77 points, to 13,000.71. The Nasdaq Composite lost 1.05%.
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