12:04 PM EDT, 09/26/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US unexpectedly declined, government data showed Thursday.

The seasonally adjusted number of initial claims decreased by 4,000 to 218,000 in the week ended Sept. 21, its lowest count since the week ended May 18, according to the Department of Labor. The consensus was for a 223,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 3,000 to 222,000.

The four-week moving average came in at 224,750, falling by 3,500 from the prior average that was revised upwards by 750. Unadjusted claims declined by 5,957 on a weekly basis to 180,878.

"Initial jobless claims fell to the lowest level in over four months, but we don't read much into one week's decline because seasonal factors may have played a role," Oxford Economics Associate US Economist Grace Zwemmer said in an client note emailed to MT Newswires. "The Federal Reserve will likely lower rates another (50 basis points) this year to preserve current labor market conditions and one week's claims data doesn't alter that."

Last week, the Fed lowered its benchmark lending rate by 50 basis points, while trimming its median federal funds rate outlooks from 2024 through 2026.

For the week ended Sept. 14, seasonally adjusted continuing claims totaled 1.83 million, largely in line with the Bloomberg consensus. Continuing claims climbed by 13,000 from the previous week's average, which was revised down by 8,000. The four-week moving average came in at 1.84 million, declining by 6,500 from the prior week's downwardly revised average, according to the DOL.

"Continued jobless claims, which track initial claims with a lag, continue to trend lower and we expect that will persist in the weeks ahead," according to Zwemmer.

Texas saw the highest increase in initial claims for the week ended Sept. 14, at 2,216, followed by New York with 1,842 and California with 1,108. The largest decrease was in Massachusetts, where claims declined by 1,969, followed by Wisconsin and Connecticut.