The U.S. economy fell at a rate of 6.3 percent at the end of 2008, according to a report released Thursday by the Commerce Department. The report showed that economy was sinking slightly faster than the 6.2 annualized percentage drop. News of the declining economy came amidst a rise in claims for unemployment benefits last week to 652,000 from the previous week's revised figure of 644,000, according to Thursday's Labor Department report. The total number of people claiming benefits jumped to 5.56 million, higher than economists' projections of 5.48 million, and a ninth straight record-high. The figures indicate the labor market remains weak even as some other economic indicators come in better than expected. Though there have been some upticks in the consumer market, which helped the economy, consumers are cutting back under the weight of rising unemployment, falling home values and shrinking investment portfolios. The decrease in those sectors has forced companies to slash production and jobs. Economists were even bracing for a sharper 6.5 percent annualized decline in the government's third and final estimate of gross domestic product for the fourth quarter.
