US Initial Jobless Claims Decline To Lowest Since Early February

(Bloomberg) --Applications for US unemployment benefits fell to the lowest level in two months, consistent with a stable labor market.

Initial claims decreased by 9,000 to 215,000 in the week ended April 12, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 225,000 applications.

Continuing claims, a proxy for the number of people receiving benefits, rose to 1.89 million in the week ended April 5, slightly higher than estimates.

New claims have remained relatively subdued in recent weeks in the face of uncertainty about the economic outlook and turmoil in global markets. Speaking at an event at the Economic Club of Chicago Wednesday, Federal Reserve Chair Jerome Powell reiterated that the labor market appears to be in “solid condition.”

The four-week moving average, a metric that helps smooth out the bumpiness, fell to 220,750, the lowest since mid-February.

Before adjusting for seasonal factors, initial claims rose. Kentucky and Missouri saw the largest gains.

Applications filed by out-of-work federal employees aren't included in total jobless claims. After spiking for a couple of weeks in February amid firings across agencies by the Trump administration, claims by those workers have dropped back to their 18-month average. The figures will be updated later on Thursday.

Separate data Thursday showed housing starts fell in March by the most in a year, as weak demand from high prices and mortgage rates gives builders little confidence to break ground.