Data shows economy poised for better growth

By Joanne Morrison

WASHINGTON (Reuters) - The labor market is holding steady, businesses are rebuilding inventories and the consumer is still spending, all signs pointing to stronger economic growth in the latter part of this year.

Fewer U.S. workers signed up for unemployment aid last week, according to the Labor Department. The number of U.S. workers filing initial claims for jobless benefits slipped by 1,000 to 309,000, the department said on Thursday.

Other data showed wholesalers boosted inventories in April, and retail chain stores saw moderate sales gains in May.

"We're not quite out of the woods yet, but the numbers are pretty consistent in showing that we're on track for an improved second half," said Kurt Karl, chief economist at Swiss Re in New York.

For several weeks now the number of workers seeking an initial week of jobless aid has held steady around 300,000, a level economists say indicates a stable labor market.

"Jobless claims continue to hold at relatively low levels, which we judge to be consistent with solid job creation," economists at Bear Stearns wrote in a research note after the release of the latest data on Thursday.

The report added to the evidence of labor-market health presented by a government report on employment last week that showed an increase of 157,000 jobs in May and a steady unemployment rate of 4.5 percent.

A separate report from the Commerce Department on Thursday showed inventories at U.S. wholesalers rose 0.3 percent in April as stocks of nondurable goods saw the biggest percentage increase in five months.