Economy, 2010 | featured news

Sales of U.S. homes rose 7.6% in August -- recovering from their steep descent in July, when the end of a popular government stimulus program drove sales to their lowest levels in more than a decade.

Construction of new homes and apartments surged 10.5 percent in August from a month earlier, the Commerce Department said Tuesday. That's the highest level since April.

Retail sales are expected to show an increase in August despite weakness in auto sales. Economists surveyed by Thomson Reuters expect retail sales will increase 0.3 percent in August following a 0.4 percent rise in July.

Private employers added 67,000 jobs, more than forecast, but governments shed jobs in August, the Labor Department reported.

Retailers are reporting surprisingly solid gains for August even as unusually hot weather and job worries kept a lid on back-to-school buying.

Consumer spending rose at the strongest pace in four months in July, supported by a small gain in incomes, offering hope that consumers will be able to keep contributing to a modest recovery.

Buying activity in the residential real estate market slowed dramatically in July, according to a report released Tuesday by the National Association of Realtors. The dramatic plunge is yet another sign the U.S. economy may be heading toward a slowdown or double-dip recession.

Employment fell for a second straight month in July as more temporary census jobs ended while private hiring rose less than expected, pointing to an anemic economic recovery.

Initial requests for jobless benefits rose last week to their highest level since April, a sign that hiring remains weak and some companies are still cutting workers. The Labor Department said Thursday that new claims for unemployment insurance rose by 19,000 to a seasonally adjusted 479,000. Analysts had expected a small drop. Claims have risen twice in the past three weeks.

The pace of consumer spending stalled in June and personal incomes failed to increase, further evidence that the economic recovery slowed in the spring.