US initial jobless claims show unexpected drop

The number of first time unemployment benefits claimants in the US unexpectedly fell last week.

According to the Department of Labor, new claims fell by 7,000 to 262,000 in the week ending 13 February.

This marked a three-month low and was much better than economists’ expectations for a 6,000 increase to 275,000.

Meanwhile, the average of new claims over the last four weeks was down 8,000 to a seasonally-adjusted 273,250.

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.

Pantheon Macroeconomics said: “It's too soon to draw any definitive conclusions, but we think the data are consistent with the idea that the underlying trend in claims is more or less steady in the low 270s. Job losses among exporters and the oil sector are too small to make much difference to the aggregate number, given the strength of the domestic services economy.”