US jobless claims unexpectedly rise

The number of first time unemployment benefits claimants in the US unexpectedly rose last week, according to data from the Department of Labor.

New claims rose by 6,000 to 278,000, versus economists’ expectations for a drop to 271,000. The previous week’s figures were unrevised.

Meanwhile, the average of new claims over the last four weeks was down 1,750 to 270,250.

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: "After three straight downside surprises, claims have nudged a bit above the underlying trend, which probably is in the mid-270s. At that level, and coupled with robust indicators of the pace of hiring, we'd expect payroll growth to run close to the 2015 average, 228k.

"That said, we expect only 180k tomorrow, thanks to a combination of a correction in the construction sector after the Q4 weather boost, and a tendency for the February number initially to be understated and then revised higher."