US jobless claims rise by 2,000, remain near two-month low

Americans lined up for unemployment benefits at an accelerated clip in the week ended 16 December but remained near the previous week's two-month low.

According to the Labor Department, initial jobless claims rose by 2,000 to 205,000 last week, well below consensus expectations of 215,000 and underscoring relative tightness in the US labour market.

The reading also gives the Federal Reserve a certain amount of leeway when it comes to deciding whether or not to hold its terminal interest rate for longer should inflation continue to be stubborn.

Continuing claims fell by 1,000 in the first week of December to 1.86m, firmly below market expectations of 1,88m, while the four-week moving average, which aims to strip out week-to-week volatility, fell by 1,500 to 212,000.

On a non-seasonally adjusted basis, initial claims fell by 9,225 to 239,865, with sharp declines in California and Georgia.

Reporting by Iain Gilbert at Sharecast.com