The number of Americans filing new claims for jobless benefits fell more than expected last week while activity in the services sector hit a six-month high in March, underscoring the economy’s solid fundamentals despite a recent softening in growth.

Service industries expanded in December at the slowest pace in six months, indicating the biggest part of the US economy cooled as the year drew to a close.

The Federal Reserve stayed the course on tapering its stimulus for the US economy yesterday, reducing asset purchases by $10bn (€7.32bn) for the second month in a row.