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Retailers reported strong sales in May and employers stepped up hiring. Housing is also strengthening and manufacturing activity is beginning to stabilize.
That was a big step down from the fourth quarter's 2.2 per cent pace and marked the weakest reading in a year.
The US jobless rate held at a more than 6-1/2-year low of 5.5 per cent in March.
United States jobs data for September and October were also revised to show 44,000 more jobs created than previously reported.