New figures show that US claims for unemployment benefits rose unexpectedly last week, highlighting continued weakness in the country's labour market.
Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 465,000, the Labor Department said, breaking two straight weeks of declines. Analysts had expected claims to be unchanged.
A separate index of economic indicators suggested US growth would be slow in the coming months.
Last week's jobs data covered the survey period for the government's closely watched employment report for September, scheduled for release early next month.
The four-week average of new jobless claims, considered a better measure of underlying job market trends, fell 3,250 to 463,250, the lowest since July 31.
The labour market has been showing modest signs of improvement after a setback in the second quarter as economic growth slowed sharply.
Relentlessly high unemployment is affecting consumer spending and the Federal Reserve on Tuesday signalled it was ready to inject more money into the economy to shore up the recovery and avert a damaging downward spiral in prices.
Despite the bump up in new applications for unemployment benefits, claims are holding well below a nine-month high of 504,000 touched in mid-August.
The number of people still receiving benefits after an initial week of aid dropped 48,000 to 4.49 million in the week ended September 11 from an upwardly revised 4.54 million the previous week.
Index suggests little sign of change
Meanwhile, a gauge of future US economic activity increased 0.3% in August, according to the independent Conference Board.
The movement in the Leading Economic Index, which rose to 110.2, suggests there will be 'little change in economic conditions over the next few months', said Ken Goldstein, an economist at the business research group.
'While the recession officially ended in June 2009, the recent pace of growth has been disappointingly slow, fuelling concern that the economic recovery could fade,' said Goldstein.
The report did show some signs of strength for an economy limping away from the longest and deepest recession since the end of World War Two. Analysts had forecast a much weaker increase of 0.1% in August.
Slightly brighter US housing news
Separate figures showed that US home sales rose in August for the first time in four months, as the housing sector showed the slightest signs of life.
Breaking a severe losing streak, the market for existing home sales rose to 4.13 million units, up from a revised rate of 3.84 million in July, industry group the National Association of Realtors said.
Despite rock-bottom mortgage rates and depressed house prices, the sector has struggled to pick itself up after the sub-prime crisis caused the market to implode. With banks still sceptical about lending, the sales have dipped in recent months as government aid has been phased out.
