U.S. recovery still weak

Four sets of economic statistics released Thursday painted a mixed picture of how well Canada's biggest trading partner — the U.S. — is recovering from the recession.

A range of merchants, from luxury retailer Nordstrom to mid-market Macy's Inc. and discounter Target Corp., reported rising February sales that beat Wall Street analysts' estimates. The gains came in the face of a decline in consumer confidence.

The increases came despite a number of heavy snowstorms in much of the country during the month.

"It is quite remarkable that many stores beat expectations," said Ken Perkins, president of RetailMetrics, a research firm. "Consumers were willing to shop in between snowstorms."

The figures are positive partly because sales in February 2009 were so awful, and consumer confidence hit an all-time low.

Orders to U.S. factories posted the biggest increase in four months in January, led by a surge in demand for commercial aircraft.

The Commerce Department said Thursday that factory orders rose 1.7 per cent in January, lightly below the 1.8 per cent gain economists had expected. It was the best showing since a 1.8 per cent advance in September.

Also on Thursday, the U.S. Labour Department said first-time claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000 last week. The drop only partly reverses a sharp rise in claims since the start of the year.

Initial jobless claims are considered a gauge of the pace of layoffs and an indication of companies' willingness to hire new workers.

A still-weak housing market also continued to weigh on the recovery. The number of Americans who agreed to buy a home fell sharply in January. The National Association of Realtors reported demand for housing sank as that stormy weather slammed Eastern states.

The weakness, however, was not confined to the wintry northeast. The biggest month-to-month drop was in the west.