The US jobs market is showing signs of improvement and inflation remains low in the economy outside the energy sector, government reports show today.
The number of Americans filing an initial claim for jobless benefits fell last week to the lowest level since early February, a hopeful sign for job seekers.
Underlying inflation, stripping out volatile food and energy costs rose 0.1 per cent in September, in line with expectations. Over the past 12 months, the core CPI has risen just 1.2 per cent, the smallest increase since February 1966.
First-time filings for state unemployment aid fell 4,000 last week to 384,000 from the previous week. The number was broadly in line with analysts' expectations that claims would be 388,000.
It was the second week in a row that claims came in under 400,000. Economists say claims above 400,000 suggest a deteriorating jobs market.
The drop also brought a decline in the closely watched four-week moving average of initial filings, seen as more reliable because it irons out weekly fluctuations.
The department said the average fell 4,250 to 390,750, also the lowest since early February.
While the report suggested layoffs are slowing, it also showed unemployed workers are still having a tough time finding new jobs. For the week ended October 4th, the number of Americans claiming benefits after filing an initial claim climbed 58,000 to 3.67 million.
Another report showed companies continue to pare inventories. Stocks at US businesses in August dropped a larger-then-expected 0.4 per cent, reflecting a large drop in automobile stocks.