US initial jobless claims dip

The number of Americans filing for unemployment benefits fell last week, according to figures from the Labor Department.

US initial jobless claims dropped by 2,000 to 212,000 from the previous week's level, which was revised up by 1,000. Analysts had expected claims to rise to 215,000.

Meanwhile, the four-week moving average rose by 1,000 to 215,500 from the previous week's average, which was revised up by 250.

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 - i.e. the number of people already collecting unemployment benefits - fell by 39,000 to 1.721m, versus expectations for a level of 1.750m. The previous week's level was revised up by 5,000 to 1.760m.

"The trend now appears to be established below 220,000 on the back of very strong economic growth in the second quarter, and it hasn't yet bottomed," said Pantheon Macroeconomics economist Ian Shepherdson.