Jobless claims fell by 3,000

Thursday, Aug. 7, 2003 | 9:40 a.m.

First-time filings for jobless benefits unexpectedly fell last week to the lowest in six months as companies fired fewer workers amid signs of stronger economic growth, a government report showed.

Initial jobless claims dropped by 3,000 to 390,000, the lowest since the week ended Feb. 8, the Labor Department said in Washington. Claims held below 400,000 for a third week, a number that economists say signals a strengthening in the labor market. The four-week moving average, a less volatile measure, fell to 397,250 from 410,000.

Growth at service companies accelerated in July and manufacturing expanded, suggesting demand is picking up, economists said. Job growth and business spending are needed to sustain momentum in the economy, economists said.

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