Weekly applications for U.S. unemployment benefits came in below market expectations, pointing to a labor market that remains steady as companies hold off on layoffs. The data comes as investors weigh whether the Federal Reserve will raise its benchmark interest rate again at the October meeting of the Federal Open Market Committee to counter inflation pressure.
Initial jobless claims totaled 197,000 for the week of Sept. 20-26, the Labor Department said on Oct. 1. That was down 1,000 from the prior week's revised figure of 198,000 and below the 200,000 median estimate in a Bloomberg survey. The earlier week was revised up from 197,000 to 198,000. The four-week moving average, which smooths out weekly swings, fell 2,500 from the prior week to 200,000.
Continuing claims, filed by those receiving benefits for two weeks or more, fell 11,000 to 1.701 million in the week of Sept. 13-19. The prior week's figure was revised down to 1.712 million from 1.719 million. The four-week average dropped 18,500 to 1,723,750.
Initial claims serve as a gauge of corporate layoffs. The measure has hovered at a low level of around 200,000 for most of this year. Most analysts say the U.S. labor market has yet to cool, as employers have avoided large-scale job cuts even with hiring slowing.
Separately, the Commerce Department reported that the personal consumption expenditures price index rose 3.4% in August from a year earlier, below the 3.7% market forecast. It gained 0.3% from the previous month, in line with expectations. With inflation running weaker than expected, some in the market read the data as reducing the odds of another Fed rate increase in October.
