US unemployment claims rise to three-month high despite expectations that they would fall
US producer prices also fell for the first time in nearly one-and-a-half years, which could make the Federal Reserve more cautious about raising interest rates this year
US filings for unemployment benefits unexpectedly rose to a three-month high last week despite expectations that they would drop, the Labour Department said on Thursday.
It said initial claims for state unemployment benefits increased 11,000 to a seasonally adjusted 261,000 for the week ended January 6, putting it at the highest level since late September. Economists had forecast claims falling to 245,000.
A large part of the country faced frigid temperatures and snow during the first week of 2018, likely making it hard for some people to report for work. Unadjusted claims for snow-slammed New York rose by 27,170 last week, more than half of the national total.
Claims have risen since mid-December, though the data tend to be volatile during year-end holidays.
However, last week marked the 149th straight week that claims remained below the 300,000 threshold, which is associated with a strong labour market. That is the longest such stretch since 1970, when the labour market was much smaller.
