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Washington » A gauge of future economic activity and a report on unemployment benefits signaled Thursday that the recovery likely will remain weak in the coming months.
The Conference Board's index of leading economic indicators rose less in October than analysts had expected. The index forecasts activity by measuring consumer expectations, building permits and other data.
And the number of newly laid-off workers seeking unemployment benefits, unchanged last week, remains above the level that would indicate the economy is adding jobs.
Together, the two reports suggested that the lack of job creation is dampening consumer expectations and prospects for an economic rebound. Uneasy consumers likely will curtail their spending, which powers about 70 percent of the U.S. economy.
New jobless claims have fallen about 22 percent since spring. But companies' reluctance to hire is weighing down the housing market -- and the economy's fledgling recovery.
A separate report Thursday found that a rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure.
Driven by rising unemployment, such loans accounted for nearly 33 percent of new foreclosures last quarter. That compares with just 21 percent a year ago, when high-risk subprime loans made during the housing boom were the main reason for default.
And the proportion of homeowners
The latest data on the economy gave investors little incentive to hold on to stocks. Major indexes tumbled about 1.5 percent Thursday, including the Dow Jones industrials, which fell about 135 points.
