US jobless claims drop to weakest level in 5 weeks

Initial claims for US unemployment benefits declined by 7,000 to 227,000 applications in the week ended Aug. 10, hitting the lowest level since early July.

 This came against forecasts for a slight rise to 235,000 in initial jobless claims, compared to the previous week’s reading, which was revised upwards by 1,000 to 234,000 applications.

Likewise, the four-week moving average for new claims, a better measure of labor market trends as it irons out weekly fluctuations, shed 4,500 to 236,500 applications, versus last week’s revised-upward average of 241,000.

This data reflected the ongoing resilience of the US labor market in the face of soaring interest rates, despite the recent weak monthly jobs report.