US Joblessness Cut, GDP Loss Eases as Recovery Shapes Up

The number of U.S. workers filing new claims for jobless benefits fell last week to 570,000, and those collecting long-term unemployment benefits dropped to the lowest level since April, government data showed on Thursday.

Also, the economy contracted more slowly than expected in the second quarter as smaller declines in consumer spending and exports offset a record inventory liquidation, while corporate profits rose.

Analysts polled by Reuters had forecast new claims slipping to 565,000 in the week ending Aug. 22 from 580,000 the prior week, which had been previously reported as 576,000.

Continued claims fell to 6.133 million in the week ended Aug. 15 from 6.252 million the prior week. That was the lowest since the week ending April 4, when they were 6.045 million.

The Commerce Department said gross domestic product, which measures total goods and services output within U.S. borders, fell at a 1 percent annual rate, unchanged from last month's estimate.

Analysts polled by Reuters had forecast output shrinking at a 1.5 percent pace in the second quarter after collapsing 6.4 percent. in the first quarter.