US jobless claims fall again in third week of August

US weekly unemployment claims fell again in the third week of August, coming in below analyst expectations, according to the Labor Department.

Initial claims for unemployment insurance fell to 261,000 in the week ending August 20, down from 262,000 the week before and the third consecutive week of decreases.

Analysts had forecast a slightly higher reading of 265,000 claims.

The Labor Department said weekly claims, which are widely used to gauge the prevalence of layoffs, had remained below 300,000 for 77 consecutive weeks, the longest streak since 1970.

The four-week moving average was 264,000, a decrease of 1,250 from the week before.

The job market is a key factor in US monetary policy makers' decisions on interest rates, which remain at historic lows.

However, while employment figures in recent months have been strong, with the US economy adding 255,000 jobs in July, other important indicators, such as GDP growth and inflation, have been weaker.