Weekly jobless claims drop but still range-bound

Weekly initial jobless claims dropped 23,000 in the latest week to 452,000, but the impressive decline comes on the heels of an upwardly revised 26,000 in the prior week.

The 4-week moving average, which removes some of the volatility from the weekly number, dipped 4,250 to 458,000.



For about a year, jobless claims have wandered within a narrow range, holding at an elevated level that signifies neither a recession nor an acceleration in economic activity that would bring down the unemployment rate.

Therefore, jobless claims well above 400,000 is likely hardening the views of Fed members who want to announce new moves at the November 2-3 meeting.