US jobless claims fall more than expected

The number of unemployment benefits claimants in the US fell more than expected last week, figures released on Wednesday showed.

According to the Labor Department, new claims declined by 12,000 to 260,000 in the week to 21 November, compared with analysts' expectations for a 271,000 reading.

Meanwhile, the average of new claims over the last four weeks were unchanged at a seasonally adjusted 271,000. The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly report and, as such, is seen as a more accurate indicator of the health of the labour market.

The Labor Department added that 2.21m people were already collecting weekly unemployment benefits, known as continuing claims, in the week to 14 November, a 34,000 increase from the prior week.

"The trend decline in continuing claims remains intact and is reassuring on the overall health of the economy, as the series is one of the best indicators of payroll growth," said analysts at Barclays.