WASHINGTON, March 21, (Agencies): The number of Americans filing new claims for jobless benefits edged higher last week, but a trend reading dropped to its lowest in five years and pointed to ongoing healing in the labor market. The Labor Department said initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 336,000, which was less than analysts had expected. The four-week moving average for new claims, a measure of labor market trends, fell 7,500 to 339,750, the lowest level since February 2008. That could bode well for job growth in March. Last week’s claims data covered the survey period for the government’s monthly tally of nonfarm jobs. The four-week average of new claims fell 6 percent relative to the survey week in February, when nonfarm payrolls increased by 236,000.

Sustained
“There is enough strength in the economy to generate jobs on a sustained basis,” said Sam Bullard, an economist at Wells Fargo in Charlotte, North Carolina.
Bullard noted however that government belt tightening and the growing risk of a flare-up in Europe’s debt crisis created headwinds for the economy.
On Wednesday, the Federal Reserve also said it was concerned about these headwinds when it pressed forward with its aggressive policy stimulus.
The Fed action came despite a rash of recent data showing the economy gathering strength. Retail sales have been stronger than expected, manufacturing output has picked up and employment growth has quickened, with the jobless rate dropping to 7.7 percent last month from 7.9 percent in January.
An industry survey on Thursday showed US manufacturing growth quickened in March and the pace of hiring increased.

The central bank said it will continue buying $85 billion in bonds per month, pledging to keep up its asset purchases until it sees a substantial improvement in the labor market outlook. Economists polled by Reuters had expected 342,000 first-time applications for jobless claims last week.
Last week, the number of people still receiving benefits under regular state programs after an initial week of aid rose 5,000 to 3.053 million in the week ended March 9.
US sales of previously occupied homes rose in February to their fastest pace in more than three years, and more people put their homes on the market. The increases suggest a growing number of Americans believe the housing recovery will strengthen.
The National Association of Realtors said Thursday that sales increased 0.8 percent in February from January to a seasonally adjusted annual rate of 4.98 million. That was the fastest sales pace since November 2009, when a temporary home buyer tax credit had boosted sales. The February sales pace was also 10.2 percent higher than the same month a year ago.
Steady hiring and near-record-low mortgage rates have helped boost sales and prices in most markets. The Realtors’ group says the median price for a home sold in February was $173,600. That’s up 11.6 percent from a year ago.

More people are also starting to put their homes on the market, which could help sales in the coming months. The number of available homes for sale rose 10 percent last month, the first monthly gain since April. Even with the gain, the inventory of homes for sale was still 19 percent below a year ago.
Jeff Kolko, chief economist at Trulia, said the increase in houses for sale is a good sign. It suggests more homeowners are gaining confidence in the recovery. That could end an inventory squeeze that has held back sales in many markets.
“Tight inventory has been a critical issue for the housing market. The limited supply of homes has fueled bidding wars and has meant that buyers have little to choose from and agents have little to sell,” Kolko said.
By region, sales of previously owned homes were up 2.6 percent in both the South and the West. Sales fell 3.1 percent in the Northeast and 1.7 percent in the Midwest, possibly in part because of adverse weather.

Even with the gains, sales nationally remain below the 5.5 million that economists associate with healthy markets.
One concern is that few first-time buyers, who are critical to a sustainable housing recovery, are entering the market. They made up only 30 percent of sales in February. That’s well below the 40 percent typical in a healthy market.
Since the housing bubble burst more than six years ago, banks have imposed tighter credit conditions and required larger down payments. Those changes have left many would-be buyers unable to qualify for super-low mortgage rates. First-time buyers have been hit particularly hard by the changes.
The average rate on the 30-year fixed mortgage dropped in November to 3.31 percent, the lowest on records dating back to 1971, and they have remained near that record low this year. This week the rate on the 30-year loan was 3.54 percent.

Rising demand and short supplies have encouraged builders to boost construction. US builders started more houses and apartments in February and received building permits for future construction at the fastest pace in 4-1/2 years.
The increases meant that builders broke ground on homes last month at a seasonally adjusted annual rate of 910,000, the second fastest pace since June 2008. Applications for building permits rose 4.6 percent to 946,000, the highest level since June 2008
A measure of the US economy’s health over the next six months increased in February from January, a sign that growth could be improving.
The Conference Board said Thursday that its index of leading indicators rose 0.5 percent in February to 94.8. That followed an equal gain in January, which was revised higher. The gauge is designed to anticipate economic conditions three to six months out.

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DETROIT:  US auto sales in March are expected to rise 8 percent and the annual sales pace should top 15 million for the fifth straight month as consumers shake off worries about the economy, according to research firms J.D. Power and Associates and LMC Automotive. Sales of new cars and trucks in March are expected to rise to 1,465,100 vehicles, while the annual sales pace is forecast to hit 15.3 million vehicles, J.D. Power and LMC said in a joint report released on Thursday. Since November, the annual rate has ranged from 15.3 million to 15.5 million. Auto sales are an early indicator each month of economic health. The industry has so far proven stronger than the overall US economy as the record high age of cars and trucks on the road has reached more than 11 years, and easier availability of credit have pushed consumers into the market.

“We expect the economic environment to improve throughout 2013, as the likelihood of a dark cloud slowing the recovery pace diminishes,” LMC senior vice-president Jeff Schuster said in a statement. “Consumers do not appear phased by headwinds from Washington, as growth in auto sales are outperforming earlier expectations.” The US auto sector is scheduled to report March sales results on April 2. In February, sales rose nearly 4 percent, delivering a better-than-expected performance on strength in the US housing market. Many executives and analysts have forecast 2013 US industry sales to finish in the 15 million to 15.5 million range. J.D. Power and LMC said the average retail transaction price in March rose 3 percent from last year to $28,504 per vehicle.