Initial jobless claims fell to 260,000, which was by more than the pros were expecting.
Economists were forecasting that claims would fall to 270,000.
The four-week moving average was unchanged from the previous week's revised average of 271,000.
Last week's claims were revised up by 1,000 to 272,000.
"The decline in initial claims indicates that from the separations side, the job market continues to firm," argues Barclays' Rob Martin.
"The latest data on durable goods orders, unemployment claims and consumer spending are solid and show the economy is completely normal despite earlier concerns about a slowdown in China or weak commodity prices possibly slowing the recovery here in the US," according to Chris Rupkey at MUFG Union Bank.
Labor Department, Haver Analytics via Barclays