Separate figures have pointed to a US economy that continues to struggle, with the country's consumers turning more pessimistic this month, while home prices fell back below crisis-era lows in March.
After the US economy grew at a slower rate than originally anticipated in the first quarter of 2011, indications are that the sluggish tone in growth persisted early in the second quarter.
US single-family home prices dropped in March to fall below the low hit in April 2009 during the financial crisis, a closely watched survey showed.
The S&P/Case-Shiller composite index of 20 metropolitan areas declined 0.2% in March from February on a seasonally adjusted basis, in line with economists' expectations. The 20-city composite index was at 138.16, falling below the 2009 low of 139.26.
The glut of houses for sale, foreclosures, tight credit and weak demand have kept the housing market on the ropes even as other areas of the economy start to recover. Home prices had been supported last spring by a tax credit, and the housing market has struggled since the credit expired.
Prices in the 20 cities fell 3.6% over 12 months, topping expectations for a decline of 3.3%.
Separately, the Conference Board, an industry group, said its index of consumer attitudes fell to 60.8 in May from a revised 66 in April, well bellow economists' forecasts for 66.5. Consumers took a more negative view of business and labour market conditions, while inflation expectations jumped.
