Initial US unemployment claims rise modestly in latest week

Initial weekly US jobless claims increased modestly, but remained below the 300,000 mark for an 85th consecutive week, their longest streak since 1970.

Unemployment claims rose by 13,000 over the week ending on 15 October to reach 260,000, according to the Department of Labor.

Economists at Barclays Research had anticipated a 1,000 person dip to 245,000.

"Despite the increase, we believe at this level claims are supportive of employment growth and we are likely to see some improvement in the labor market in October relative to September. We remain attentive to the possibility that the arrival of Hurricane Andrew in the Southeastern US could push initial claims higher, but so far this does not seem to have been the case," said Rob Martin at Barclays Research in a research report sent to clients.

The prior week's estimate was revised higher by 1,000 to 247,000.

The four-week moving average edged up by 2,250 to 251,750.

Secondary unemployment claims, those which are not filed for the first time and referencing the week ending on 8 October were up by 7,000 to 2.057m.