02:10 PM EDT, 07/25/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US dropped more than the market predicted, while continuing claims also fell, government data showed Thursday.

The seasonally adjusted number of initial claims declined by 10,000 to 235,000 in the week ended July 20, according to the US Department of Labor. The consensus was for a 238,000 level in a survey of analysts compiled by Bloomberg.

The previous week's reading, which Jefferies said last week tied June 8 for the highest level since Aug. 12, 2023, was revised up by 2,000 to 245,000.

While the July 20 week's print was a two-week low, the four-week average ticked up, according to Stifel Chief Economist Lindsey Piegza. The four-week moving average came in at 235,500, rising by 250 from the prior week's average, which was revised up by 500. Unadjusted claims dropped by 55,502 on a weekly basis to 225,090.

For the week ended July 13, seasonally adjusted continuing claims totaled 1.85 million, a decrease of 9,000 from the previous week's level that was revised down by 7,000. The Bloomberg consensus was for 1.87 million continuing claims.

The four-week moving average for continuing claims was about 1.85 million, the highest level since Dec. 4, 2021, the DOL said. The average gained 4,750 from the previous week's downwardly revised average.

Texas reported the biggest increase in initial claims for the week ended July 13 at 11,927, followed by California at 6,284 and Georgia at 3,101. New Jersey posted the biggest decline at 1,532, followed by Massachusetts and Indiana.

The market is widely predicting that the Federal Open Market Committee will cut interest rates at its meeting in September, according to the CME FedWatch tool. However, Piegza said on Thursday that "a very compelling case would have to be made in the July and August data" for that to happen.