US initial jobless claims remain at lowest since 1973

Initial unemployment claims in the States remained at their lowest level since the tail-end of 1973 during the latest week.

Initial unemployment claims were flat at 246,000 over the seven days ending in 8 October, according to the Department of Labor.

Economists had forecast 254,000.

The Department of Labour lowered its initial estimate of weekly claims for the prior week by 3,000 to 246,000.

In parallel, the four-week moving average of initial claims slipped by 3,500 to 249,250, its lowest mark since 3 November 1973.

Secondary unemployment claims, those which are not filed for the first time and referencing the week ending on 1 October, decreased by 16,000 to reach 2.046m.

"We continue to view incoming data on labor markets as pointing to further improvement in labor market conditions, consistent with our outlook for modest employment and consumption growth over the remainder of the year," Barclays Research's Michael Gapen said in a research report sent to clients.

Gapen also pointed out that continuing claims, on a four-week moving average basis, had only risen in three states year-to-date: North Dakota, Hawaii and Minnesota.

Increases in North Dakota and Minnesota were attributed by Gapen to the downturn in the energy sector.

"Labor market weakness in manufacturing-intensive states, as viewed through the lens of jobless claims data, seems to have abated," he added.

As of 1335 BST the yield on the benchmark 10-year bond yield was lower by two basis points to 1.75%.