U.S. initial jobless claims tumbled last week even though workers idled by hurricane Katrina sought compensation.

Initial claims for benefits fell by 79,000 to 356,000, after seasonal adjustments, in the week that ended Sept. 24, the U.S. Labor Department said today.

But the four-week average of new claims last week climbed to 385,500 from 377,000, reflecting the impact of Katrina.

The number of new claims filed was much smaller than Wall Street had expected. Analysts had called for claims to fall by just 2,000 to 430,000.

Separately, the U.S. government left its estimate of second quarter economic growth unrevised, although measures of inflation edged higher and corporate profits grew more slowly than previously reported, the U.S. Commerce Department said.

Gross domestic product rose at a seasonally adjusted 3.3% annual rate April through June, the Commerce Department said in its second revision of economic growth for the quarter.

Personal consumption was somewhat stronger due to higher spending on utilities, like electricity. That was offset by downward revisions to inventories, Commerce said.

Corporate profits after taxes rose 5.3% to US$975 billion in April through June, a smaller gain than the previously reported 6.9% rise. Earnings dipped 0.1% in the first quarter. Year over year, profits climbed 9.9% as compared to the second quarter of 2004.

The biggest component of GDP is consumer spending, accounting for about two-thirds of economic activity. Second-quarter spending climbed 3.4%, up from the previously estimated 3.0% gain but below the first quarter’s 3.8% advance. Purchases of durable goods increased 7.9% and non-durables rose 3.6%.

Business spending rose 8.8%, above the earlier estimated 8.4% increase and the first-quarter’s 5.7% climb.