US jobless claims fall more than forecast to five-week low

US jobless claims fell more than forecast last week, with the four-week moving average pulling back for the first time in five weeks.

According to the Department of Labor, initial filings for unemployment benefits totalled 222,000 in the week ended 5 July. That's down from a revised 239,000 the week before and well below the dip to 236,000 expected by economists.

While still higher than average levels reported through February to April, it marked the lowest reading since the week ended 25 May. Oxford Economics said this was likely due to the "generous seasonal adjustment factor for the week that included the July 4th holiday".

However, the four-week moving average, which smoothes out week-to-week volatility, still fell to 233,500 from a revised 238,750 the week before.

Continuing jobless claims, meanwhile, unexpectedly declined to 1,852m in the week to 28 June, down from 1.856m the previous week and below the 1.860m forecast.

"Seasonal factors will make the data noisy for the next three weeks, making it difficult to discern too much from the data," Oxford Economics said. "Take a step back from seasonal noise, the claims data are consistent with a labor market characterized by a slower pace of hiring but still relatively few layoffs."