Unemployment claims fell by 4,000 to 364,000 in the week ended Dec. 17, the lowest level since April 2008, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index improved to minus 45 in the period ended Dec. 18 from a reading of minus 49.9 the prior week, marking the biggest seven-day gain since January.

A decline in firings and the cheapest gasoline prices since February are helping revive retail sales during the busiest shopping season of the year. A stronger consumer, whose spending accounts for 70 percent of the economy, raises the odds the U.S. can ride out the debt crisis in Europe or failure by Congress to extend tax cuts.

“Spending has looked pretty good so far, and continued job and income growth will help maintain that,” said Samuel Coffin, an economist at UBS Securities LLC in New York, who projected claims would fall to 365,000. “At some point, events in Europe are likely to have some effect on activity, but we’re heading into that headwind with a lot of momentum.”

Stocks rose on the improving jobs outlook, sending the Standard & Poor’s 500 Index higher for a third day. The gauge increased 0.8 percent to 1,254 at the close in New York. Treasury securities also advanced, sending the yield on the benchmark 10-year note down to 1.96 percent from 1.97 late yesterday.
Survey Results

The median forecast of 45 economists surveyed by Bloomberg News projected an increase in jobless claims to 380,000. Estimates ranged from 355,000 to 400,000. The number of applications has dropped by 40,000 over the past three weeks.

“This is great news,” Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York, said in a note to clients. “One unexpectedly low number can easily be a fluke. Two are interesting. Three are telling us something real is happening in the labor market.” For more visit: Bloomberg.com

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