US data point to uneven recovery

       US consumer spending rose at its fastest in nearly eight years in August, but a persistently weak labour market and below-forecast expansion in manufacturing in September could hamper a nascent economic recovery, data showed.
       The latest batch of mixed data released on Thursday was yet another indication that while growth probably resumed in the third quarter after a prolonged recession, staying on a steady path could prove to be a challenge.
       "While the economy is emerging from recession, recovery is likely to proceed in fits and starts rather than a continuous upward march. This uneven pattern of growth is what we've been seeing for the last several weeks," said Zach Pandl,an economist of Nomura Securities International in New York.
       The US Commerce Department said personal spending jumped 1.3%in August, the largest gain since October 2001, after a 0.3% rise in July. Spending was up for a fourth straight month and beat expectations for a 1.1% rise.
       Spending was likely boosted by a government-sponsored discount scheme for new motor vehicle purchases, dubbed "cash for clunkers," which ended in August.
       Optimism over the rise in spending,which normally accounts for over twothirds of US economic activity, was clouded by reports showing more people than expected applied for first-time unemployment benefits last week and manufacturing activity in September,although growing, missed expectations.
       A report from the Labour Department showed initial claims for state unemployment insurance rose to 551,000 last week from 534,000 in the previous week,more than analysts' expectations for 530,000. It was the first rise in three weeks.
       Separately, the Institute for Supply Management said its index of national factory activity eased to 52.6 in September from 52.9 in August - below expectations for a reading of 54.
       Despite the disappointing manufacturing and jobless claims reports, other segments of the US economy continue to heal.
       Pending sales of existing homes surged 6.4% in August, notching a seventh consecutive month of gains, the National Association of Realtors said. The rise drove the industry group's sales gauge to its highest since March 2007.
       Housing is at the heart of the United States' worst recession in 70 years. The wealth of most Americans is tied to their homes and a recovery in the battered housing market could encourage them to spend more and help support economic growth.
       Personal income rose 0.2% in August after rising 0.2% in July, the Commerce Department said.