Mixed reports due out on health of U.S. economy

WASHINGTON -- Reports on first-time jobless claims, consumer spending and new home sales come out this morning, as economists wait to crunch the numbers.

The jobless claims are expected to show slight improvement from the week before, while consumer spending should post a rebound in October. Sales of new homes are expected to grow as well, propelled by first-time buyers taking advantage of a special tax credit.

Even with signs of emerging strength, economists worry the recovery could falter if consumer spending goes South in the face of joblessness that is already at the highest point in 26 years and poised to go still higher.

The weak jobs market is already depressing incomes, and that, in turn, hurts consumer spending -- the engine that drives the U.S. economy.

(Copyright 2009 by The Associated Press.  All Rights Reserved.)