U.s. Economy | featured news

Sales of new single-family homes rose in March, indicating the housing market recovery remains on track.

A sharp decline in the price of oil this month is making gasoline cheaper at a time of year when it typically gets more expensive. It's a relief to motorists and business owners and a positive development for the economy. Over the past three weeks, the price of oil has fallen by 9 percent to $89 a barrel.

Home resales edged downward in March, a pause in the housing market recovery that has helped boost the economy.

The number of Americans filing new claims for unemployment benefits rose slightly last week, which could further allay fears of a major setback in the labor market recovery. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 352,000 the Labor Department said on Thursday.

Retail sales contracted in March for the second time in three months, a sign the American economy may have stumbled at the end of the first quarter.

U.S. retailers are reporting modest sales gains for March as consumers held back due to cold weather during the month and continued worry about the economy. Overall, 14 retailers reported on Thursday that revenue at stores open at least a year — a key indicator of retail health — rose an average of 0.6 percent. That number comes from the research firm Retail Metrics.

The number of Americans seeking U.S. unemployment benefits fell sharply last week to a seasonally adjusted 346,000, suggesting March's weak month of hiring may be a temporary slowdown.

A few Federal Reserve policymakers expected to taper the pace of asset purchases by midyear and end them later this year, while several others expected to slow the pace a bit later and halt the quantitative easing program by year-end, according to minutes of the Fed's March meeting.

U.S. employers added just 88,000 jobs in March, the fewest in nine months and a sharp retreat after a period of strong hiring. The slowdown may signal that the economy is heading into a weak spring. The Labor Department said Friday that the unemployment rate dipped to 7.6 percent, the lowest in four years, from 7.7 percent. But the rate fell only because more people stopped looking for work. People who are out of work are no longer counted as unemployed once they stop looking for a job.

From household wealth to spending at stores, many of the U.S. economy's vital signs have recovered from the damage done by the Great Recession. Home foreclosures and layoffs have dropped to pre-recession levels.