US jobless claims, housing data point to worsening economy

[The Northerner]

Reports issued on Thursday on initial claims for unemployment benefits and sales of previously owned homes confirm that the US economy is slowing dramatically.

The Labor Department reported that initial jobless claims for the week ended July 17 rose by 37,000 to 464,000. The number was far higher than the consensus forecast of economists. It underscored the bleak prospects for any significant reduction in the unemployment rate, now officially at 9.5 percent.

The four-week moving average of initial claims also rose, hitting 454,750, up 1,250 from the previous week. In a healthy economy with substantial hiring, initial jobless claims usually fall below 400,000.

Also on Thursday, the National Association of Realtors reported that existing home sales fell 5.1 percent in June to an annual rate of 5.37 million units. It was the second consecutive monthly drop. Home sales in the US are down 26 percent from their peak in September 2005.

The sales figure followed other housing data released earlier in the week showing that the housing market recovery is collapsing. Housing starts fell in June to the lowest level since October, and homebuilder sentiment fell this month to its lowest level since April 2009.

Read more: http://www.wsws.org/articles/2010/jul2010/econ-j23.shtml

[leftofcool]

1. Tax credit expired. That is why the housing market is down.

[OhioChick]

2. Well, that's a no-shit headline n/t