Durable-goods orders hovered near a 13-year low and the number of Americans collecting unemployment insurance reached a 17th straight record, offering no sign of an imminent rebound from the worst U.S. recession in half a century.
Orders rose 1.9 percent in April after a 2.1 percent drop in March that was more than twice as large as previously estimated, the Commerce Department said in Washington. Meanwhile, the Labor Department said 6.79 million people are collecting jobless benefits, and another report showed new-home sales were lower than forecast in April.
Today’s figures indicate that while the pace of the economy’s contraction may be easing, there’s no signal yet that it is ready to grow. Rising unemployment will keep consumer spending in check, making companies reluctant to ramp up investment and builders hesitant to start work on properties.
“We have a tough slog ahead of us,” said Carl Riccadonna, a senior U.S. economist at Deutsche Bank Securities Inc. in New York. “The recovery is going to be very slow in its emergence.”
By Courtney Schlisserman and Shobhana Chandra – bloomberg.com
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