US initial jobless claims rose to a level of 197,000 in the week ended July 25 from an upwardly revised 188,000 level in the previous week, compared with expectations for a larger increase to 200,000 in survey of analysts compiled by Bloomberg.
The four-week moving average declined by 5,000 to 202,750 after decreasing by 7,000 to a level of 207,750 in the previous week, hitting the lowest point since the week ended May 16.
Insured jobless claims fell by 7,000 to 1,782,000 in the employment survey week ended July 18. Insured claims were at a level of 1,812,000 in the employment survey week ended June 13.
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.