US: Jobless claims head southwards again – Nomura

Analysts at Nomura note that the US initial jobless claims decreased 9k to 233k in the week ending 7 April, bringing the four-week moving average to 230k as the jump in initial claims in the prior week appears transitory.

Key Quotes

“The incoming reading is at a level consistent with the trend over the past few months. Continuing claims increased 53k to 1871k in the week ending 31 March, a still-low reading. Note that next week’s initial jobless claims release will coincide with the BLS survey week for the April employment report. As the labor market continues to strengthen on the heels of solid Q1 2018 payroll employment growth (despite a weather-induced transitory slowdown), initial and continuing jobless claims should stay low.”