New weekly filings for unemployment benefits have been meandering between 450,000 and 500,000 so far this year. The implication: the recovery in the labor market has hit a rough patch. Recent economic news doesn’t offer much reason to think that’s a material change for the better coming in the immediate future. For example, yesterday we learned that new home sales crumbled by a third in May to a record low annual pace of 300,000. "We’re going to see a home-sales air pocket after the end of the tax-credit stimulus," said Richard DeKaser, the founding economist at Woodley Park Research told Bloomberg News. "That means housing will be a drag on third-quarter economic growth."
clipped from www.capitalspectator.com
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