"Slower growth could be linked to a combination of fiscal drag hurting demand at home while at the same time many export markets remain in fragile states "
- Chris Williamson, chief economist at Markit
A bunch of economic data from the U.S was published on Thursday, sending mixed signals about the economic growth, as house prices posted the biggest gain since May 2006, unemployment claims fell more than expected, while manufacturing slowed for a second straight month in May. The number of people in the U.S. filing new claims for unemployment benefits dropped 23,000 to a seasonally adjusted 340,000 in the week ended May 18th, pushing back below the 350,000 mark which economists normally associate with a stabilised labour market. The less-volatile four-week moving average for new claims also slipped 500 to 339,500. At the same time the U.S. house prices rose 7.2% in the year through March, while the number sales of new homes soared to a seasonally adjusted annual rate of 454,000 in April, increasing 2.3% the Commerce Department said Thursday.
In a separate report financial data firm Markit said that U.S. Manufacturing Purchasing Managers Index tumbled to a seven-month low of 51.9 in May, down from 52.1 the previous month. Despite the slowdown, the reading is still above the 50 threshold.
© Dukascopy Bank SA