US initial jobless claims unexpectedly drop

The number of Americans filing for unemployment benefits unexpectedly fell last week, according to the Labour Department.

US initial jobless claims dropped by 1,000 from the previous week’s unrevised level to 253,000, versus expectations of an increase to 265,000.

This marked the 72nd consecutive week claims were below 300,000 - the longest streak since 1973.

The four-week moving average of new claims was 257,750, down 1,250 from the previous week’s unrevised average of 259,000.

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 the numbers look great, “but a hefty rebound, sooner or later, is inevitable”.