US initial jobless claims fall more than expected

The number of first time unemployment benefits claimants in the US fell more than expected last week, signalling a degree of resilience in the labour market.

According to the Department of Labor, new claims fell by 16,000 to 269,000 in the week ending 5 February,

This was better than economists’ expectations for a reading of 281,000 and marked the lowest level in almost two months.

The previous week’s claims were unrevised.

Meanwhile, the average of new claims over the last four weeks was down 3,500 to a seasonally-adjusted 281,250.

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.

"This drop does not reverse all the apparent increase in the trend over the past couple of months, but it does add weight to our view that a good part of the increase was due to turn-of-the-year seasonal adjustment problems," said Pantheon Macroeconomics.