USA is Losing Steam, Coming to a Dead End

The US economy is losing steam and may enter into a long phase of measured growth that falls short of removing job market worries, analysts warn.

A monthly review released in the US on Tuesday shows unexpectedly weakened retail sales, new home construction, manufacturing and inventory building and exports, AFP reported.

According to the recent data, the Consumer Confidence Index (CCI), which is considered as a key economic indicator, has dropped during July from 54.3 to 50.4.

The latest CCI figure -- the worst in five months -- comes while Americans have been waiting in vain for a positive development in the job market and business conditions.

"Labor markets remain in turmoil," said economist Jeffrey Rose of Briefing.com. Weekly jobless insurance claims "remain well above recovery levels and non-farm payroll growth has been disappointing" while unemployment remains near 10 percent, he added.

Last week, Federal Reserve chief Ben Bernanke described the US economic outlook as "unusually uncertain," signaling a possible use of more extraordinary measures to save the economy from falling into a double-digit recession.