US initial jobless claims much higher than expected, hit 14-month high

Americans lined up for unemployment benefits at an accelerated pace in the week ended 5 October, according to the Labor Department.

Initial jobless claims rose by 33,000 to 258,000, significantly exceeding market expectations for a reading of 230,000 with a fresh 14-month high, adding weight to arguments that the Federal Reserve Bank will likely announce interest rate cuts in each of its remaining meetings in 2024.

Continuing claims increased by 42,000, while the four-week moving average, which aims to strip out week-to-week volatility, grew by 6,750 to 231,000.

Notable increases were seen in Michigan and California.

Reporting by Iain Gilbert at Sharecast.com