The number of Americans claiming unemployment benefits in the last month continued to drop despite a rise in new claims in the latest week, according to Bloomberg. On Tuesday, the Labor Department’s jobless claim report for the week ending Jan. 1 showed that the number of initial claims for unemployment insurance claims rose by 18,000 to reach 409,000, which was in line with forecasts from economists. However, the four-week average of new claims dropped by 3,500 to reach 410,750, marking the lowest level since July 2008.

The positive labor data has boosted hopes further that the U.S. economic recovery is starting to gain momentum, although claims frequently surge in the second week of January as temporary holiday workers are dismissed. The harsh weather across the Northeast and other parts of the U.S. also dampened retail sales over the holidays, which were projected to increase 3.5% in December. However, the 3.2% growth at stores open more than one year was still strong, while the 5.5% jump in retail revenue over the holiday period recorded by MasterCard Advisors’ SpendingPulse was the best in five years.

Click here to read the story on jobless claims from Bloomberg News.

Click here for coverage of retail sales from Bloomberg News.