US unemployment claims rise less than expected

The number of first time unemployment benefits claimants in the US rose less than expected last week , figures released on Thursday showed.

According to the Department of Labor, new claims rose by 1,000 to 260,000 in the week to 24 October, compared with analysts' expectations for a 265,000 reading.

Meanwhile, the average of new claims over the last four weeks fell by 3000 to a seasonally adjusted 259,250, the lowest reading in 42 years, the report added.

The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures and, as such, is seen as a more accurate indicator of the health of the labour market.

The Department of Labor added 2.14m people were already collecting weekly unemployment benefits, known as continuing claims, in the week to 17 October, a 37,000 decline from the prior week.