US jobless claims fall to lowest level since July

The number of first time unemployment benefits claimants in the US fell to their lowest since July last week , figures released on Thursday showed.

According to the Department of Labor, new claims declined by 13,000 to 263,000 in the week to 3 October, compared with analysts' expectations for a 274,000 reading.

Meanwhile, the average of new claims over the last four weeks fell by 3000 to a seasonally adjusted 267,500, the report added.

The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures and, as such, is seen as a more accurate indicator of the health of the labour market.

The Department of Labor added 2.2m people were already collecting weekly unemployment benefits, known as continuing claims, in the week to 26 September, a 9,000 increase from the prior week.

"Despite the recent softening in payroll growth, this morning’s data confirm that the separations side of US labor markets remains quite healthy," analysts at Barclays said in a note.