US initial jobless claims low in October survey week

Initial jobless claims for the week ending October 17 ticked up to 259k, from an upwardly revised prior-week reading of 256k, in line with forecast (260k) and a touch below consensus expectations (265k). The four-week moving average of initial claims fell to 263k (previous: 265k), the lowest level since 1973. Continuing jobless claims for the week ending October 10 were little changed (2.170mn, previous: 2.164mn) and below expectations.

The four-week moving average of continuing claims dropped to 2.185mn (previous: 2.203mn), and the insured unemployment rate was unchanged at 1.6%. The Labor Department saw no special factors impacting the report. This morning's data for survey-week initial jobless claims show a decline from last month's level (264k) and suggest continuing claims will likely register a decline from September survey-week levels (2.244mn) as well.

"We take positive signal from declining labor market separations, which suggest US labor market strength remains intact", says Barclays.