A slowdown in the housing and construction markets contributed to a sluggish outlook for the economy Thursday, highlighting the significance of government stimulus and job creation.
According to new statistics, pending homes sales and construction both declined in May. In addition, figures showed that while manufacturers recorded some gains in June, the pace of activity in that sector slowed last month compared with May and also came in slightly below estimates.
“The idea of a growth slowdown in the second half of 2010, a long held belief of ours, is catching on as the data increasingly reinforces this idea,†said Dan Greenhaus, the chief economic strategist for Miller Tabak and Company.
The tranche of economic indicators were the latest regular monthly features that economists and analysts watch carefully to gauge the pace of the economic recovery. But all eyes are on the monthly jobs figures scheduled for release Friday, which are expected to show a 125,000 decrease from 431,000 in nonfarm payrolls for June and a rise to 9.8 percent from 9.7 percent in the unemployment rate.
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