WASHINGTON — Rising factory output and a decline in the pace of layoffs are giving economists confidence that the recovery has staying power.
The government is expected to report today that the economy added jobs in March for only the second time since December 2007.
Still, job creation is likely to remain weak for years to come, in part because U.S. factories have become more efficient, producing more goods with fewer workers.
Construction spending fell sharply in February to its lowest level in eight years, the Commerce Department said Thursday. Spending fell particularly hard in commercial ventures, such as hotels and office buildings.
“Even as manufacturing continues to hum along, the construction sector looks awful,” said Michael Feroli, an economist at JPMorgan Chase.
U.S. manufacturing activity increased in March at its fastest rate in 5 1/2 years, a private trade group said Thursday.
Manufacturing data released Thursday by China, Britain and the 16 countries using the euro all showed a surge in activity in March.
Manufacturers are benefiting from a robust recovery in Asia and parts of Latin America and increased business investment in the United States.
The Labor Department said new claims for jobless benefits dropped by 6,000 last week to a seasonally adjusted 439,000. It was the fourth decline in five weeks, a signal that the pace of layoffs is slowing.
Still, the number of people continuing to claim unemployment benefits remains high, at nearly 4.7 million — a sign that hiring remains weak.
And that figure doesn’t include the more than 6 million people who are receiving extended benefits from the federal government after their state benefits — which last 26 weeks — ran out.
Without much help from construction or manufacturing, the unemployment rate, now at 9.7 percent, is likely to be high for several years.
