Amid ongoing fears of a so-called "double dip" recession, the news was seen as another indication that recovery may have stalled, and it was accompanied by other news about slumping home sales.

Unemployment has been stuck at a stubborn 9.5 percent, with hundreds of thousands of Americans struggling in the category of the long-term unemployed - those unable to find jobs for six months or more.

During the summer months, President Obama has sought to focus attention on economic progress, such as encouraging signs of recovery in the U.S. auto industry.

With U.S. lawmakers focused on campaigning for mid-term congressional elections in November, there is little chance Congress would move in the remainder of this year on any new economic stimulus if the president proposed it.

Nevertheless, Mr. Obama says his economic team will identify additional measures he says could make a difference in promoting economic growth and hiring in the short-term.

One of those is a tax incentive and lending bill to help small businesses, which the president says has been "held hostage" by Republicans in the Senate.

"Unfortunately this bill has been languishing in the Senate for months, held up by a partisan minority that will not even allow it to go to a vote. That makes no sense. This bill is fully paid for, it will not add to the deficit, and there is no reason to block it besides pure partisan politics," said President Obama.