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Latest US figures are slightly brighter

US housing market - New building activity bounces back
US housing market - New building activity bounces back

New economic figures from the US have offered some hope that the country's economy could soon pull out of a recent weak patch.

New claims for unemployment benefits fell last week, while new house-building and permits for future construction rose in May.

Initial claims for state unemployment insurance slipped 16,000 to 414,000, the Labor Department said, suggesting the jobs market was regaining some momentum after stumbling in May.

A separate report from the Commerce Department showed that housing starts rose 3.5% to a seasonally adjusted annual rate of 560,000 units, regaining almost half of April's steep decline. Economists had forecast a figure of around 540,000.

New building permits unexpectedly rebounded 8.7% to 612,000 last month, the highest level since December.

The reports were the latest to suggest some easing in the economic slowdown that started as the year began. Data this week showed modest declines in retail sales and motor vehicle production in May.

April's housing starts were revised up to 541,000 from 523,000.. An oversupply of previously owned houses, especially repossessed properties which sell well below their value, is dampening new home construction. A survey on Wednesday showed sentiment among home builders at its lowest in nine months in June.