Initial jobless claims fall more than expected

Initial jobless claims fell more than expected last week.

Claims for unemployment insurance totaled 271,000, down from the consensus forecast of 274,000.

For the previous week, claims climbed by 277,000, above expectations of 271,000.

The four-week moving average was 272,500, an increase of 1,000 from the previous week’s un-revised average of 271,500.

The Department of Labour reported no special factors.

“The gradual improvement in the trend of continuing claims remains encouraging, which is an indication that the ability of previously displaced workers to find new jobs is improving. And even though this report will have no bearing on next week’s payrolls report, the constructive trend in claims in recent weeks suggests that the positive labour market trend is continuing,” according to TD Securities US macro & rates strategist Cheng Chen.

Additionally, in a preview of the data to clients, Bank of America’s global economist Ethan S. Harris wrote: “[O]ther measures of the labour market such as ADP and jobless claims have … been strong. More broadly, as we have argued repeatedly, with post-crisis healing and fewer shocks from Washington, the economy is fundamentally more healthy than it was a few years ago.”

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