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The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, underscoring the economy's sustained strength. Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 280,000 for the week ended December 20, the Labor Department said on Wednesday.
It was the lowest reading since November 1 and marked the fourth straight week of declines. The report came a day after the government reported the economy expanded at its fastest pace in 11 years in the third quarter and consumer spending increased solidly in November. Economists polled by Reuters had forecast claims ticking up to 290,000 last week.
