Analysts at Nomura explain that the US initial claims during the week ending 27 May increased 13k to 248k and the four-week moving average was 238k, up 2k from the prior month as after stabilizing somewhat during the first four months of 2017, May saw a further downward trend in the four-week moving average of initial claims.

Key Quotes

“Continuing unemployment claims ticked down slightly by 9k to 1915k with the insured unemployment rate staying low at 1.4%. The four-week moving average for continuing unemployment claims also declined, and now stands at 1915k. During the first five months of 2017, the four-week moving average of continuing unemployment claims declined by 167k. For comparison, during the entire calendar year of 2016 this metric declined by 133k. Continued low readings from this report are in line with the view that labor market conditions remain tight.”