US continuing jobless claims fall back in mid-December

Initial jobless claims ticked down to 267k in the week ending December 19. The four-week moving average rose a touch to 273k (previous: 271k) and no special factors were reported by the Labor Department.

Continuing jobless claims for the week ending December 12, the survey week for the December employment report, fell 47k to 2.195mn. This data confirm the view that the moderately higher readings over the past two weeks for continuing unemployment claims do not represent an inflection point or upward trend that is likely to be sustained.

These higher readings boosted the four-week moving average (2.211mn, previous: 2.201mn); however, the insured unemployment rate fell back to 1.6% in the latest week. Versus the November survey week, initial jobless claims were flat in December and continuing claims were up 40k. Low levels of jobless claims indicate that US labor markets are finishing 2015 on a solid footing.

"We look for further improvement next year, with the unemployment rate falling to 4.6% by the end of Q2", says Barclays.