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Latest economic indicators show negative signs

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More Americans than forecast filed first-time unemployment claims last week and consumer confidence fell, Bloomberg reported.

Applications for unemployment benefits increased by 9,000 in the week ended June 18 to 429,000, according to figures released by the U.S. Department of Labor.

“The jobless claims numbers are troubling,” said Maxwell Clarke, chief U.S. economist at IDEAglobal, in an interview with Bloomberg. “The Fed is a little nervous,” he said, and the economy is “going to start next quarter out on a weak note.”

The Bloomberg Consumer Comfort Index dropped to minus 44.9 last week from minus 44 the previous week. Readings of minus 40 or lower are generally associated with recessions and their aftermaths.

The decrease from the previous week left the gauge close to its average for the year. The index of consumers’ views of the economy fell to the worst reading since April.

Also, purchases of new homes dropped 2.1 percent in May according to U.S. Department of Commerce numbers released today.