US jobless claims rise unexpectedly

Official figures show that the number of US workers filing new claims for jobless benefits rose unexpectedly last week to a high not seen since April.

The figures show that initial jobless claims rose more than 4% to 479,000 in the week ended July 31, according to the Labor Department.

Analysts had expected a fall to 455,000.

It reflects “a recovery that is losing steam,” according to economist Andrew Gledhill at Moody’s Economy.com.

The figures come in the same week that the Commerce Department reported consumer spending in the US remained flat in June.

Households in the US continue to be squeezed amid higher unemployment.

Consumer spending, which makes up for more than two-thirds of overall economic activity in the US, was unchanged from May.

There have been fears about the strength of the US economic recovery, particularly as the country continues to grapple with high unemployment.

Higher unemployment and a slowdown in manufacturing have sparked fears of a “double-dip” recession in the world’s largest economy.

However, the housing market also appears to be an area of concern after the end of the Government’s tax credit initiative. This provided up to $8,000 for new buyers and $6,500 for current owners who buy and move into another home.

However, as the effect of the tax credit continues to fade over the next few months, sales and activity are expected to dwindle, according to experts.

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