WASHINGTON — Momentum in U.S. hiring and home sales appears to be slowing, according to fresh data.
The average number of people seeking U.S. unemployment benefits over the past month is at a three-month high. And fewer Americans bought previously owned homes in March after mild weather boosted sales in the previous two months.
A possible weakening in two critical elements of the U.S. economy suggests growth could stay modest this year.
“We are in for a few more quarters of moderate growth before stronger gains might appear,” said Joel Naroff, president of Naroff Economic Advisors. More hiring is needed to drive up wages and salaries and fuel the recovery, he added.
The Labor Department said Thursday that weekly applications dipped last week by 2,000 to a seasonally adjusted 386,000. But that was only after the department revised up the previous week’s data to show 8,000 more people applied for benefits than first estimated.
The four-week average, a less volatile measure, rose last week by 5,500, to 374,750. That’s the highest level in three months, although it is still 9 percent lower than the level from September.
The unemployment benefits report “suggests job growth is slowing,” said Jennifer Lee, an economist at BMO Capital Markets. “Still growing, mind you, but at a slower pace.”
Home sales also have lost some vitality from the start of the year.
The National Association of Realtors said sales of previously owned homes fell 2.6 percent last month to a seasonally adjusted annual rate of 4.48 million. That’s down from a revised 4.6 million sold in February. In healthier markets, sales typically are closer to 6 million.
A mild winter might have encouraged more people to buy in January and February, essentially stealing sales from March.
“We are most certainly not set to declare that the housing recovery is over, but a strong start to the spring selling season is simply not in the data,” said Dan Greenhaus, chief global strategist at BTIG in New York.
Many economists have downplayed the weak March hiring figures, noting that a warmer winter might have also led to some earlier hiring in January and February.
