MNI BRIEF: Jobless Claims Stays Low, 2Q GDP Revised Higher

MNI (WASHINGTON) - U.S. initial jobless claims came in close to market consensus for a second straight week while second quarter GDP growth was revised higher and core inflation revised lower, a set of data that bode well for the health of the labor market and the economy. 

Claims dipped to 231,000 in the week through Aug. 24 and the four-week average fell 4,000 to 232,000, the Bureau of Labor Statistics said Thursday. Continuing claims were 1.868 million, slightly higher than in recent weeks but down from the recent three-year high of 1.871 million in July. 

Core PCE inflation was revised down to 2.77% from 2.89% in the second quarter, and growth was revised to a 3.0% rate in the Bureau of Economic Analysis's second estimate. Consumption was revised up 0.6 pp, offset by downward revisions to private domestic investment and government expenditures. 

Fed funds futures continue to price in over 30 bps of cuts in September. (See: MNI INTERVIEW: US Job Worries Grow - Conference Board )