US government figures show that new claims for unemployment benefits fell last week, though they remained at a high level.
Initial claims for state unemployment benefits dropped for a second straight week, slipping 6,000 to a seasonally adjusted 472,000 in the week ended August 28, the Labor Department said.
Analysts had expected claims to edge up to 475,000 from the previously reported 473,000 the previous week, which was revised up to 478,000 in today's report.
Meanwhile, US pending home sales rose dramatically in July, a trade group said today, promising a much-needed boost to the sluggish housing market.
The National Association of Realtors said pending home sales rose 5.2% based on contracts signed in July. Analysts had expected sales to be flat after a terrible figure for June, which showed sales near nine year lows. June's figure was revised down slightly.
But the industry group warned the foundations for a firm recovery were not yet set.
'Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,' said Lawrence Yun, NAR chief economist.
'For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity,' he said.
Productivity lower as labour costs rise
A second report from the Labor Department showed that productivity shrank at an annual rate of 1.8% in the second quarter, instead of the previously reported 0.9% pace. That was the largest decline since the third quarter of 2006.
Unit labour costs, a gauge of potential inflation pressures closely watched by the Federal Reserve, rose at a 1.1% rate rather than the previously estimated 0.2%. The increase in unit labour costs was the fastest rate since the fourth quarter of 2008. Unit labour costs fell at a 4.6% rate in the first three months this year.
Other data showed that new orders received by US factories edged up 0.1% to a seasonally adjusted $409.5 billion after falling 0.6% in June.
