US jobless claims drop more than expected
The number of Americans filing for unemployment benefits fell more than expected last week, according to figures from the Labor Department.
US initial jobless claims fell by 8,000 to 207,000 from the previous week's level, which was revised up by 1,000 from 214,000. Economists had been expecting a smaller drop to 213,000.
The Labor Department said claims for South and North Carolina were affected by Hurricane Florence, which hit the region in mid-September.
Meanwhile, the four-week moving average rose by 500 to 207,000 from the previous week's average, which was revised up by 250 from 206,250. 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 to 1.650m from the previous week's level, which was revised up to 1.663m from 1.661m. Economists had been expecting a level of 1.665m.
Pantheon Macroeconomics said the Florence hit was very small and is unwinding
"The increase in jobless claims triggered by Hurricane Florence was very modest, and smaller than we expected. It is now fading, and claims likely will soon hit new cycle lows, breaching the 200k mark for the first time since 1969," said economist Ian Shepherdson.
"The labour force is more than twice as big as in 1969, and claims as a share of employment are at a record low. With strong growth likely to persist for some time, fuelled by fiscal easing, claims likely will hit further lows over the next few months as the number of businesses in trouble declines."