US jobless claims drop by 5,000

Americans lined up for unemployment benefits at a decelerated pace in the week ended 31 August, according to the Department of Labor.

Initial unemployment claims dropped by 5,000 week-on-week to 227,000, a seven-week low and below market expectations for a reading of 230,000.

Despite the decline, claims remained significantly above averages seen earlier in 2024, as the US labour market continued to soften since its post-Covid peak but remained historically tight.

Elsewhere, outstanding claims fell by 22,000 to 1.83m in the previous week, while the four-week moving average for initial claims, which aims to strip out week-to-week volatility, fell by 1,750 to 230,000.

Reporting by Iain Gilbert at Sharecast.com