US jobless claims rise more than expected

Jobless claims came in at 231,000, up 10,000 from the previous week’s level, which was revised up by 5,000 to 221,000. Economists had been expecting a level of 220,000.

Meanwhile, the four-week moving average came in at 218,750, down 500 from the previous week's average, which was revised up by 1,250 from 218,000.

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.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "Claims for the week of Christmas are always a tricky call, and this number probably also includes the first hit from the partial federal government shutdown, though we can’t say for sure.

"The seasonals next week point to a sharp drop in claims, perhaps below 210K, but again the shutdown could easily prevent that from happening. Given the extended run of distortions from the hurricanes, the California fires and the holiday season, we just don’t know what’s happening to the underlying trend in claims. But with GDP growth likely to be near 3% in Q4, after gains averaging 3.8% in Q2 and Q3, any meaningful upward trend seems unlikely at this point."