US initial jobless claims hit four-month high
The number of Americans filing for unemployment benefits unexpectedly rose last week, to their highest level since June, according to data from the Labor Department.
US initial jobless claims rose by 3,000 from the previous week's revised level to 224,000, versus expectations for a drop to 215,000. The previous week's level was revised up by 5,000.
Meanwhile, the four-week moving average came in at 218,500, up 2,000 from the previous week's level, which was revised up by 1,250 to 216,500.
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 1.668m from 1.670m, versus expectations of 1.635m. The previous week's level was revised down by 6,000.
Ian Shepherdson at Pantheon Macroeconomics said: "This looks grim and we can’t rule out the idea that the trend in claims is turning up. But it seems strange that a turn in the trend would coincide perfectly with the hit from Hurricane Florence, which was then followed by Michael just three weeks later.
"The very early Thanksgiving likely will push claims up further next week, and the data won’t then be free of holiday distortions until mid-January. The weekly numbers therefore ought not to be taken very seriously, but the trend matters, in light of the clear slowing in the housing market and the softening in manufacturing evident in the ISM survey. Serious cyclical turns in claims take time to become properly established, so it’s far too soon to jump on these recent data as definitive evidence of anything. But neither should you ignore the recent upturn altogether, especially if it doesn’t reverse in the New Year."