While most of the economic data we have been seeing lately has been weaker than expected, one bright spot over the last few months has been initial jobless claims. This week proved to be no exception as jobless claims came in considerably lower than expected (324K vs 342K). It was also the lowest weekly reading in claims going all the way back to January 2008!
Looking at the four-week moving average of jobless claims, we also saw a notable drop this week from 358.3K down to 342.3K. While it was not enough to make a new post-recession low (340.8K), it was the largest weekly drop in the four-week moving average since December.
On a non-seasonally adjusted basis, first time jobless claims fell down to 298.7K. This represents the lowest weekly reading for this time of year dating back to 2007 (267.7K).