Two sets of figures from the US have sparked worries about the country's economic recovery.
The Labor Department said new claims for US unemployment benefits have risen for the first time in five weeks, while an index meant to gauge the future strength of the US economy fell slightly in April.
The Labor Department said initial jobless claims totalled 471,000 in the week ending May 15, up 25,000 or 5.6% from the previous week's revised figure of 446,000. Analysts had expected a drop in claims.
The four-week moving average of new claims, which is considered a better measure of underlying labour market trends, rose 3,000 to 453,500. New applications for unemployment benefits had been edging lower even though employment has now grown for four straight months.
Analysts believe the high level of initial claims indicates that the US unemployment rate, which hit 9.9% in April, will remain high for a while and come down only gradually as small businesses are still struggling.
Meanwhile, the Conference Board's index of leading economic indicators fell in april for the first time in more than a year. The index slipped 0.1% last month, surprising analysts who had been looking for a 0.2% gain. It was the first drop since March 2009.
The index, which aims to forecast growth six to nine months out, had risen to record highs in recent months. 'These latest results suggest a recovery that will continue through the summer, although it could lose a little steam,' said Ken Goldstein, economist at the Conference Board.
The report's findings are consistent with the forecasts of market economists, who see growth tapering off modestly in the second half of 2010 after a robust start to the year.
