May saw an accelerated 0.6% gain in U.S. retail sales, and the number of Americans applying for unemployment benefits last week declined. Analysts say the two indicators point to sustained recovery. "The economy is showing more evidence of the positive feedback loop, particularly through the housing channel, but we still have this push and pull of monetary policy and fiscal policy," said Robert Dye, chief economist at Comerica in Dallas, noting the Federal Reserve's aggressive bond buying amid automatic government spending cuts.

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