U.S. indicators point to soft economy

A series of key economic indicators Thursday hinted at a U.S. economy that's still struggling to get back on its feet.

American sales of previously occupied homes fell in June and are expected to keep sinking, the National Association of Realtors said.

Junesales fell 5.1 per cent to a seasonally adjusted annual rate of 5.37 million, the group said, a possible sign the U.S. housing market's troubles are a drag on the economic recovery.

The median sale price was $183,700, up one per cent from a year earlier.

Jobless claims rise

Meanwhile, there was more bleak news on the employment front, as the Department of Labour reported that the number of unemployed Americans filing for initial jobless claims rose by 37,000 to 464,000 in the week ended July 17.

The four-week average was 456,000, an increase of 1,250 from the previous week's four-week average. Economists pay closer attention to the four-week figure because it smoothes out fluctuations.

The total number of people collecting benefits from state unemployment programs hit 4,487,000, a decrease of 223,000 from the preceding week. But experts say it's likely those numbers are decreasing because people are running out of benefits, not returning to work.

On Wednesday, Congress approved legislation to restore unemployment benefits to people who have been out of work for six months or more.

Partisan bickering had caused a seven-week interruption of benefits for more thantwo million people.

"Americans who are working day and night to get back on their feet and support their families in these tough economic times deserve more than obstruction and partisan game-playing," U.S. President Barack Obama said in a statement Wednesday night, adding he would sign the bill into law the moment it lands on his desk.

Retroactive payments could go out as early as next week in some states. Obama has struggled to stimulate a moribund economy while keeping a ballooning federal deficit under control.

Under normal circumstances, the first 26 weeks of jobless benefits are paid for by the states.But the newlegislation renews a federally financed program providing up to 73 additional weeks of benefits in states with high unemployment rates.

About half of those eligible have had their benefits cut off since funding expired June 2.