US initial jobless claims unexpectedly fall

Initial jobless claims dropped by 4,000 to 259,000 in the week to 3 September, surprising analysts who had predicted claims would rise to 265,000 from an unrevised 263,000 the previous week.

“Yet more evidence that whatever has dampened companies' hiring plans has not made them so nervous that they feel the need to lay off staff,” said Ian Shepherdson, chief executive of Pantheon Macroeconomics.

“The trend in claims is now running in the low 260s, and is stable. A temporary spike next week as a result of the impact of Hurricane Hermine is a reasonable bet, but we see no reason to expect the trend in claims to rise anytime soon, unless you think the sudden dip in the August ISMs will be sustained. At this point, we're inclined to see them as fluke readings.”

The four-week moving average, which is less volatile and seen as a more accurate measure of labour market trends, declined 1,750 to 261,250 from the prior week.

Continuing jobless claims, which reflect people already receiving unemployment checks, dipped 7,000 to 2.14m in the week ended 27 August.