US jobless claims fall to four-year low
The number of Americans filing new claims for unemployment benefits unexpectedly fell last week to a near four-year low, suggesting the labour market recovery was gaining steam.
“The job market is getting better and that’s really key. We’re still in the early innings of this but I’m glad to see another data point that adds to the picture of an improving economy,” said Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey
Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 348,000, the Labor Department said, the lowest level since March 2008.
Economists polled by Reuters had forecast claims rising to 365,000. The four-week moving average for new claims, seen as a better measure of labour market trends, fell 1,750 to 365,250 – the lowest since April 2008.
In a separate report, the Commerce Department said housing starts rose 1.5 percent to an annual rate of 699,000 units last month, beating economists’ expectations for a 675,000-unit pace.
Starts were boosted by multi-unit buildings, reflecting growing demand for rental apartments as Americans move away from homeownership. Permits for future home construction rose 0.7 percent to a 676,000-unit pace in January.
U.S. stock index futures and crude oil futures pared losses after the data. The dollar rose against the yen, and U.S. Treasuries prices rose modestly.