Factory, jobs data show economy mired in weakness

(Reuters) - The slowdown in the economy persisted early in the third quarter as factory activity in the U.S. Mid-Atlantic region contracted in July for a third straight month and new claims for jobless aid surged last week.

Other reports on Thursday showed home resales slumped to their lowest level in eight months in June and a gauge of future economic activity slipped last month.


"The data confirm that the economy has cooled off pretty considerably late in the second quarter and early in the third quarter from the pace we saw earlier in the year," said Omair Sharif, an economist at RBS in Stamford, Connecticut.

The economy has been hit by fears of deep government spending cuts and higher taxes next year, as well as troubles from the debt crisis in Europe, culminating in slower job growth, weak consumer spending and soft manufacturing output.

READ MORE:  http://www.reuters.com/article/2012/07/19/us-jobless-idUSBRE86I0NI20120719