- Ryan Sweet, Moody's Analytics
The number of Americans filing for unemployment benefits fell markedly last week, official figures revealed on Thursday. The US Department of Labor reported initial jobless claims dropped to 223,000 during the week ended February 24, the lowest level since March 1973, following the preceding week's downwardly revised 242,000 filings. Meanwhile, market analysts anticipated a slight increase to 243,000 in the reported week. That marked the 104th week of claims below the 300,000 level, the longest streak since 1973. Analysts suggest that the US labour markets are at or close to full employment. The four-week moving average of claims, which is considered a better measure of labour market trends, declined 6,250 to 234,250 last week, the lowest since April 1973. Data also showed the number of continuing jobless claims rose 3,000 to 3.07 million in the week ending February 18, while their four-week moving average climbed 750 to 2.07 million. The strong labour market performance combined with solid inflation growth are expected to give the Federal Reserve more evidence to support a rate hike at its next policy meeting. Back in the Q4, the US economy expanded at a 1.9% annualized pace and is expected to grow 1.8% in the first quarter of 2017. After the release, the US Dollar Index hit its seven-week high.
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