3-Sep-2010 10:55 AM

Fed expects sluggish US recovery; home sales up, jobless claims down

US Federal Reserve, in its Aug-2010 meeting, stated it expects economic recovery to remain sluggish in the coming months, commenting: "Real GDP growth was noticeably weaker in the second quarter of 2010 than most had anticipated, and monthly data suggested that the pace of recovery remained sluggish going into the third quarter” (China Securities Journal, 01-Sep-2010). Separately, National Association of Realtors stated (02-Sep-2010) pending home sales increased 5.2% to 79.4 in Jul-2010 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1% below Jul-2009 when it was 98.1. Meanwhile, US Department of Labor stated (02-Sep-2010) jobless claims declined by 6,000 in the week ended 28-Aug-2010 to 472,000, for a second consecutive week of reductions. The four-week moving average was 485,500, a reduction of 2,500 from the previous week's revised average of 488,000.

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