The number of Americans filing new applications for unemployment benefits dropped to a four-month low last week, suggesting that the labor market remained fairly healthy. The upbeat outlook on the economy was underscored by other data on Thursday showing corporate profits increased at a more robust pace than initially thought in the second quarter.

The number of Americans filing new unemployment claims rose by 2,000 to a seasonally adjusted 230,000 for the week ending Sept. 7, indicating low layoffs despite a slowing labor market. Businesses are reducing hiring as higher interest rates curb demand.

The number of people filing for weekly unemployment benefits for the first time dipped to a seasonally adjusted 218,000, its lowest number since May as the country's workforce numbers appear to hold steady.