Jobless claims rise as manufacturing slows

? Manufacturing grew more slowly, construction spending fell to its lowest level in almost two years and new claims for jobless benefits went up, signs that the economy’s road to recovery is hitting a rough patch.

The latest batch of economic reports released Thursday underscored the difficulties facing companies and workers amid an uneven recovery. And, they raised new questions about where the economy is heading.

Manufacturing is growing sluggishly, with the Institute for Supply Management’s index of business activity dipping to 50.5 in July from 56.2 in June.

The performance was weaker than the index reading of 55 that many analysts were predicting, but it still marked the sixth month in a row in which manufacturing activity flashed a growth signal.

An index above 50 signifies growth in manufacturing, while a figure below that shows contraction.

“Did the manufacturing sector only hit an air pocket in July or did one of the engines flame out?” wondered economist Joel Naroff. “July seems to be shaping up as our month of discontent.”

In another report, the Commerce Department said construction spending declined by 2.2 percent in June from the previous month. That pushed down the value of construction projects to $820.8 billion, the lowest level since August 2000.

And, in a third report, more Americans filed new claims for unemployment insurance last week.

For the work week ending July 27, new applications for job benefits rose by a seasonally adjusted 20,000 to 387,000, the Labor Department reported. That pushed claims to their highest level since the beginning of July.

Despite Thursday’s weak reports, White House spokesman Ari Fleischer also expressed confidence in the economy.

“By every measure, most of the data that is coming out does support the private-sector belief, the government’s belief that the economy is growing,” he said.