U.S. initial applications for unemployment insurance fell to 227,000 in the week ended July 5, down 5,000 from the prior week’s revised level of 232,000 and below the 235,000 economists had expected. The reading is the lowest in roughly two months and marks a fourth straight weekly decline. Continuing claims, which track the total number of people receiving benefits, inched up by 1,000 to 1.965 million in the week ended June 28, remaining within the range seen since early May. Claims for the prior week were revised up to 237,000 from 233,000, while continuing claims for the same period were unrevised at 1.964 million. The latest figures suggest the labor market is still absorbing layoffs at a moderate pace even as hiring cools, offering few immediate signs of a sharp deterioration. Investors and policymakers are watching the trend closely for any signal that broader economic momentum is fading.