London, United Kingdom (PressExposure) June 29, 2010 -- “Sovereign-International” said that the US economy showed further signs of a stall in its recovery after the Labor Department released data showing that the number of people filing new claims for jobless benefits climbed last week after three straight weekly declines.

The firm said the figures left them in no doubt that the economic recovery would run out of steam in the absence of additional stimulus from the US government. President Barack Obama has had his attempts to introduce what “Sovereign-International” calls “stealth stimulus”, frustrated by the Senate which is reluctant to sanction additional fiscal profligacy.

Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000 after hovering near 450,000 since the beginning of 2010. This has raised concerns at “Sovereign-International” that hiring is anemic and could slow the recovery.

The said that the jobless claims numbers had added to worries about the employment outlook which gained traction after the May US non-farm payrolls which showed that the economy had only generated 41,000 private-sector jobs – sizeable decline from April’s 218,000.

“Sovereign-International” said that with consumer spending in the US falling, it was likely that the recovery would slow to a crawl if further stimulus was not forthcoming. The firm suggests that the US would have to issue more debt at a time when investor concerns are mounting about the unprecedented levels of sovereign debt on the market.

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