US initial jobless claims fall more than expected

The number of first time unemployment benefits claimants in the US fell last week, according to data from the Department of Labor.

New claims fell by 11,000 to a seasonally-adjusted 271,000, coming in a little better than expectations of 275,000.

Meanwhile, the average of new claims over the last four weeks was down 250 to 270,500.

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 claims and other labor market data continue to tell us that the strength in the non-manufacturing economy is offsetting the industrial slowdown, captured in the grim December Philly Fed survey," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.