EconomyGlobal economy
US jobless claims fall to 194,000, the lowest in three months
Fewer Americans applied for unemployment benefits last week than economists expected, and a gauge of future activity held steady, pointing to an economy still on firm footing.
Key points
- Initial jobless claims fell to 194,000, below the 200,000 economists expected.
- The Conference Board's leading index was unchanged in September, against a forecast fall of 0.2%.
- The average 30-year mortgage rate eased to 7.32% from 7.40%.
The number of Americans filing new claims for unemployment benefits fell last week to its lowest level in three months, a sign that employers are still holding on to workers despite high interest rates and an oil shock.
Initial jobless claims dropped to 194,000, the Labor Department’s weekly figures showed on Thursday. That was below both the previous week’s level and the 200,000 economists had forecast.
A separate reading from the Conference Board, a research group, showed its index of leading economic indicators unchanged in September. Economists had expected a 0.2% decline. The index combines measures such as factory orders, building permits and share prices and is meant to signal where the economy is heading.
Borrowing costs for homebuyers eased slightly. The average rate on a 30-year fixed mortgage fell to 7.32% from 7.40%, according to the mortgage finance company Freddie Mac.
Why markets shrugged
On another day, strong jobs data might have pushed bond yields up by reducing the case for lower interest rates. On Thursday it was drowned out by a sell-off in technology shares that sent investors into Treasuries, and the 10-year yield fell below 5%.
The figures land less than two weeks before the 3 November midterm elections, with the economy and prices at the centre of the campaign. September’s consumer price data showed inflation rising, and oil above $110 a barrel threatens to push it higher.