US initial jobless claims unexpectedly dip
The number of Americans filing for unemployment benefits unexpectedly dipped last week, according to data from the Labor Department.
US initial jobless claims were down 5,000 from the previous week's revised level to 229,000, beating expectations for an increase to 235,000. Meanwhile, the previous week's level was revised up by 1,000 to 234,000.
The four-week moving average fell 7,250 to 232,500 from the previous week's level, which was revised up by 250. This marked the lowest level for the average since April 1973, when it was 232,250.
The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.
The Commerce Department claims taking procedures continue to be severely disrupted in the Virgin Islands. The ability to take claims has improved in Puerto Rico and they are now processing backlogged claims.
Pantheon Macroeconomics said: "Increasingly, it appears that the trend in claims has declined to a new low, consistent with the strengthening in surveys of labor demand. Falling claims boost consumers' sentiment, and usually are associated with falling unemployment and a rising quits rate. The labour market continues to tighten."