US initial jobless claims fell to a level of 203,000 in the week ended Aug. 22 from an upwardly revised 207,000 level in the previous week, in contrast with expectations for an increase to 208,000 in survey of analysts compiled by Bloomberg as of 7:40 am ET.
The four-week moving average rose by 1,250 to 205,500 after increasing by 4,500 to a level of 204,250 in the previous week.
Insured jobless claims decreased by 18,000 to 1,778,000 in the employment survey week ended Aug. 15. Insured claims were at a level of 1,777,000 in the employment survey week ended July 18.
The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.
A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.