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Other recent data have painted a mixed picture of the job market and economic growth. The economy expanded at an annual rate of 1.9 percent in the first three months of this year, the Commerce Department said Thursday. That's a slower pace than first estimated a month ago. Governments and consumers spent less and businesses rebuilt their stockpiles more slowly. Economists expect growth may pick up a bit in the current quarter, to between 2 percent and 2.5 percent. Steady hiring and lower gas prices should give consumers more money to spend. Companies may also order more goods in order to rebuild their stockpiles. Still, growth of 2.5 percent typically generates only enough jobs to keep pace with population changes. Most economists say it takes almost twice as much growth to boost hiring enough to lower the unemployment rate by 1 percentage point over a year. The housing market looks to be slowly improving. Home prices rose in March from the previous month in most major U.S. cities for the first time in seven months, according to the Standard & Poor's/Case-Shiller home price index. And in April, sales of both previously occupied homes and new homes rose near two-year highs. Fixed mortgage rates have dropped to record lows, making many optimistic that home sales will climb further. Builders are gaining more confidence in the market as traffic from potential buyers rises, according to an industry survey.
[Associated
Press;
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