US Economic Signals Point Down

Posted July 19th, 2012 at 10:55 am (UTC-5)
Leave a comment

There are new signs that the already-sluggish American economy is losing strength.

The government said Thursday that the number of unemployed workers making first-time claims for financial benefits jumped last week, up 34,000 to 386,000. Economists say the closely watched figure has to consistently fall below 375,000 to push the country's high 8.2 percent jobless rate on a downward path.

A business research group, the Conference Board, said its index of leading U.S. economic indicators fell in June, declining three-tenths of a percent, after increasing four-tenths of one percent in May. The group said its survey showed a weakness in new orders, consumer expectations and building permits for new developments.

Meanwhile, a trade group, the National Association of Realtors, said sales of existing homes dropped by 5.4 percent in June, to an annual rate of about 4.4 million. That is still sharply lower than the 6 million figure that analysts consider to be a healthy market.