Fears that the economic recovery is fizzling grew Thursday after the government and private sector issued weak reports on a number of fronts. Unemployment claims are up, home sales are plunging without government incentives and manufacturing growth is slowing.

AP via Breitbart

Meanwhile, 1.3 million people are without federal jobless benefits now that Congress adjourned for a weeklong Independence Day recess without passing an extension. That number could grow to 3.3 million by the end of the month if lawmakers can’t resolve the issue when they return.

All of this worries economists. As jobless claims grow and benefits shrink, Americans have less money to spend and the economy can’t grow fast enough to create new jobs. Some are revising their forecasts for growth in the third quarter. Others are afraid the country is on the verge of falling back into a recession.

“We find the level and direction in jobless claims somewhat troubling and the increase is likely to feed double-dip fears,” said John Ryding, an economist at RDQ Economics in a note to clients.

New claims for benefits jumped by 13,000 to a seasonally adjusted 472,000, the Labor Department said Thursday.

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