WASHINGTON (Reuters) – The chances of a deal between Democratic and Republican lawmakers that would overhaul the tax system, trim government spending and reform safety net spending programs appear to be fading.

A sudden improvement in the outlook for the government deficit over the next decade has alleviated some of the pressure on lawmakers to act. And a spate of scandals, involving the Internal Revenue Service, security for the U.S. mission in Benghazi and the seizure of phone records from the Associated Press news agency, has distracted Congress and the White House.

WASHINGTON (Reuters) – The U.S. economy showed fresh signs of slower growth in the second quarter, with factory activity slipping in the mid-Atlantic region while groundbreaking declined at home construction sites.

Other data on Thursday showed a spike in new claims for jobless benefits last week as well as soft underlying inflation that could point to weak demand in the economy.

WASHINGTON (Reuters) – The U.S. economy showed worrisome signs as jobless claims rose sharply last week while ground-breaking at home construction sites tumbled in April and a gauge of underlying inflation pointed to weak demand.

The data could fuel fears over the impact of a government austerity drive that began in January, and could raise pressure on the Federal Reserve to keep its money printing press running on overdrive as the central bank buys bonds to support the economy.

WASHINGTON (Reuters) – U.S. President Barack Obama reminded the world on Thursday of the lofty goal set early in his presidency to double American exports over five years. It looks like he won’t deliver.

Trade data published earlier in the day underscored the uphill battle faced by the administration. Weakness in the global economy is knocking down demand for U.S. exports, which rose just 3 percent in the 12 months through March.

WASHINGTON (Reuters) – U.S. President Barack Obama reminded the world on Thursday of the lofty goal set early in his presidency to double American exports over five years. It looks like he won’t deliver.

Trade data published earlier in the day underscored the uphill battle faced by the administration. Weakness in the global economy is knocking down demand for U.S. exports, which rose just 3 percent in the 12 months through March.

WASHINGTON (Reuters) – The number of Americans filing new claims for jobless benefits fell sharply last week to its lowest level since the early days of the 2007-09 recession, suggesting the job market is still healing despite weakness in the broader economy.

Other data on Thursday showed a narrowing of the U.S. trade gap in March, although drops in imports and exports during the month gave potential warning signs over the strength of domestic and foreign demand.