US initial jobless claims drop more than expected

The number of Americans filing for unemployment benefits fell more than expected last week, according to the Labor Department.

US initial jobless claims declined by 18,000 from the previous week’s unrevised level to 259,000, beating expectations of a smaller drop to 270,000.

This marked the 68th consecutive week claims were below 300,000 - the longest streak since 1973.

The four-week moving average of new claims was 267,000, down 2,250 from the previous week’s unrevised average.

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.