Economy, August | featured news

U.S. service firms, which employ 90 percent of the work force, grew at a slightly faster pace in August. But the sector remains weak, adding to concerns that the economy is at risk.

Job creation came to a halt in August, according to new government data that show an economic recovery that appears to be sputtering out. The Labor Department on Friday reported zero net job creation in August, far worse than the 68,000 net jobs analysts had expected to be added. The unemployment rate was unchanged at 9.1 percent. The July job growth number was revised downward, as well, to only 85,000 jobs added that month — not the 117,000 estimated.

Retail sales at major chain stores beat analysts' expectations, rising 4.4% year-over-year in August, according to Thomson Reuters' tally of 23 retailers. Discounters, including Target Corp. and Costco Wholesale Corp., did well as East Coasters stocked up before Hurricane Irene.

Manufacturing grew a little slower in August than the previous month, but didn't contract as some had feared.

The pace of U.S. private sector job growth slowed in August for the second month in a row with employers adding 91,000 positions, a report by a payrolls processor showed on Wednesday.

The number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace.

Sales of U.S. homes rose 7.6% in August -- recovering from their steep descent in July, when the end of a popular government stimulus program drove sales to their lowest levels in more than a decade.

Construction of new homes and apartments surged 10.5 percent in August from a month earlier, the Commerce Department said Tuesday. That's the highest level since April.

Retail sales are expected to show an increase in August despite weakness in auto sales. Economists surveyed by Thomson Reuters expect retail sales will increase 0.3 percent in August following a 0.4 percent rise in July.

Only 47.6% of people ages 16 to 24 had jobs in August, the lowest level since the government began keeping track in 1948, the Labor Department said Friday