US jobless claims fall more than expected

The number of Americans filing for unemployment benefits fell a little more than expected last week, according to the Labor Department.

US initial jobless claims dropped by 9,000 to 267,000 from the previous week’s unrevised level, versus economists’ expectations for a smaller decline to 270,000.

This marked 57 consecutive weeks of initial claims below 300,000 - the longest streak since 1973.

Meanwhile, the four-week moving average of new claims was 266,750, up 3,500 from the previous week’s unrevised average of 263,250.

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.

"Note, though, that the claims numbers right now and for the next few weeks are subject to greater swings than usual, thanks to the difficulty of adjusting the numbers to take account of the changing date of the Easter holiday each year. When the dust settles, we expect to see the underlying trend stable at about 270-to-275K, consistent with continued 200K-plus payroll gains.

"Nothing in these data suggest that the softness apparent in the Q1 activity data is a warning of sustained weakness ahead," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.