US jobless claims unexpectedly decline

The number of Americans filing for unemployment benefits unexpectedly fell last week, according to the Labour Department.

US initial jobless claims declined by 1,000 from the previous week’s unrevised level to 261,000, beating expectations for a jump to 265,000.

This marked the 77th consecutive week claims were below 300,000 - the longest streak since 1973.

The four-week moving average of news claims was 264,000, down 1,250 from the previous week’s unrevised average.

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.

Pantheon Macroeconomics said: "We were nervous that the floods in Louisiana would drive claims up, temporarily, but there's no hit in this report. That does not mean the danger has passed, though, and we would not be surprised to see claims jump next week.

"Either way, the underlying trend remains extremely low and, if anything, has fallen further over the past couple of months, from the low 270s to the low 260s."