WASHINGTON — A gauge of future economic activity and a report on unemployment benefits signaled Thursday that the recovery likely will remain weak in the coming months.
The Conference Board’s index of leading economic indicators rose less in October than analysts had expected. The index forecasts activity by measuring consumer expectations, building permits and other data.
And the number of newly laid-off workers seeking unemployment benefits, unchanged last week, remains above the level that would indicate the economy is adding jobs.
Together, the two reports suggest the lack of job creation is dampening consumer expectations and prospects for an economic rebound. Uneasy consumers likely will curtail their spending, which powers about 70 percent of the U.S. economy.
New jobless claims have fallen about 22 percent since spring, but companies’ reluctance to hire is weighing down the housing market — and the fledgling recovery.
The Labor Department’s report on jobless benefits said first-time claims amounted to a seasonally adjusted 505,000 last week. That was the same as the previous week’s revised figure, and it matched analysts’ expectations. A year ago, there were 533,000 initial claims.
The four-week average, which smooths out volatility, fell for the 11th straight week to 514,000, the lowest level in nearly a year.
