The number of people seeking unemployment benefits fell to its lowest level in five months, while economic growth, though still anemic, was better than expectations.
The final gross domestic product reading for the quarter was at 1.3 percent, against estimates of 1.2 percent and ahead of prior estimates of 1.0 percent.
The number of people seeking unemployment benefits fell sharply last week, an encouraging sign that layoffs are easing.
The Labor Department says that weekly applications dropped 37,000 to a seasonally adjusted 391,000, the lowest level since April 2. It's the first time applications have fallen below 400,000 since Aug. 6.
Applications typically need to fall below 375,000 to signal substantial job growth. They haven't been that low since February.