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There have been some signs that hiring will improve. The number of people seeking unemployment benefits fell last week by the most in a year, the government said Thursday. But applications are still higher than they were in March, suggesting April's report could still be weak. And earlier this week, the Institute for Supply Management, a private trade group, said factory activity grew at the fastest pace in 10 months and a gauge of manufacturing employment showed that hiring jumped. Still, service companies expanded in April at the slowest pace in four months, according to a separate ISM survey. And the group said hiring at those companies, which employ roughly 90 percent of the work force, slowed. The economy expanded at a 2.2 percent annual rate in the January-March quarter, down from 3 percent growth in the fourth quarter. Economists polled by the AP forecast the economy will grow 2.5 percent this year. In a healthy economy, that would be considered average. But faster growth is needed to spur greater job creation. Consumers increased their spending in the first quarter at a 2.9 percent annual rate, the largest gain in a year. But Americans also saved less, a trend that economists worry isn't sustainable. And incomes rose in the first quarter at the slowest pace in two years. That could weigh on consumer spending in the coming months. Economists hope that ongoing job growth will boost incomes and fuel more spending.
[Associated
Press;
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