There are signs the recession is losing its force in the United States with jobless claims falling steeply.
Productivity has also risen faster than expected in the first quarter according to the latest figures. But a sign America is still mired in a financial crisis: the latest unemployment rate has risen to 9.4 per cent from 8.9 per cent. According to figures released Friday employers cut only 345,000 jobs in May, after shedding 539,000 in April. But financial experts say the thriftyness of consumers means any recovery won’t be vigorous enough to create many jobs. With money so tight it will come as no suprise American consumers are focussing more on basics rather splashing out on expensive meals and designer clothes. Home sales are up – a sign of growing confidence and prompting economists to forecast growth will resume in the second half of the year. To sum it all up: one senior US economist said: “It’s still bad, but not as bad it has been.”