U.S. jobless claims still elevated

First-time claims for jobless benefits in the U.S. fell last week by the largest amount in two months, but show that continuing layoffs are still constraining the world's biggest economy.

Claims dropped by 19,000 to a seasonally adjusted 457,000, the Labour Department reported, but remain stuck at the same level as at the beginning of the year.

The number came in slightly below the consensus of economists surveyed by Thomson Reuters, which had been for 460,000.

Claims need to fall closer to 425,000 to signal sustained job growth, many economists say.

New claims dropped steadily last year after reaching a peak of 651,000 in March 2009.

Separately, the Commerce Department said orders for big-ticket manufactured goods fell by 1.1 per cent last month, hit by a decline in sales of commercial aircraft.

But when orders in the volatile transportation sector are factored out, sales rose 0.9 per cent, suggesting that manufacturing remains a key driver of the recovery.