US initial jobless claims drop more than forecast

The number of Americans filing for unemployment benefits fell more than expected last week, according to data released by the Labor Department on Thursday.

Jobless claims declined by 18,000 from the previous week’s revised level to 214,000, marking the lowest level since May and beating expectations for a smaller drop to 225,000. The previous week’s level was revised up by 1,000.

Meanwhile, the four-week moving average came in at 223,000, down 1,750 from the previous week’s average, which was revised up by 250 to 224,750.

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.

Continuing claims - which represent the number of people already collecting unemployment benefits - fell to 1.739m from a revised 1.742m, versus expectations for a level of 1.720.