Sales Of Homes and Durable Goods Boosting US Economy
November 28, 2012 3:15 AM EST
The sale of homes and manufactured goods like refrigerators, computers and heavy machinery are boosting the U.S. economy, according to reports issued Tuesday. Further, consumer confidence this month climbed to its highest level in nearly five years.
U.S. home prices in a 20-city index rose 0.3 percent in September, after an 0.8 percent rise in August, according to the S&P/Case-Shiller home price index. It was the sixth straight monthly rise, soemething that indicates the housing market is "in the midst of a recovery," Case-Shiller said. Prices have increased 3 percent on a year-on-year basis.
"The housing recovery has been underway for 18 months and has begun to gather a real head of steam in the past six months," Capital Economis said in a note. "This has triggered the leap in the rate at which the rent of shelter component of the consumer price index is rising, to a three-month annualised rate of 3.3 percent in October from 1.4 percent in July."
Tuesday's Case-Shiller data confirms other improving housing reports, TD Securities said in a note.
"Overall, the tone of this report was quite encouraging and the steady pick-up in prices underscores the narrative of improving U.S. housing market fundamentals," analyst Millan Mulraine said, according the MarketWatch. "This is largely consistent with the better tone in other housing market indicators, such as home sales, building activity and home builders' confidence, which have all risen to cycle highs in recent months."
Secondly, orders for manufactured goods designed to last at least three years -- not counting autos or aircraft -- rose in October for the second straight month, the Commerce Department said. A big drop in civilian aircraft orders was offset by orders for other items, such as machinery, refrigerators and computers.
"October's durable goods data suggest that the slump in business investment eased slightly last month," Capital Economics said. "But we don't anticipate any marked turnaround until Congress gets its act together and reaches an agreement to avert most, if not all, of the fiscal cliff."
Thirdly, the Conference Board said its consumer confidence index climbed to its highest level since February 2008, when the nation was slipping into recession.
"This month's moderate improvement was teh result of an uptick in expectations, while consumers' assessment of present-day conditinos continues to hold steady," Lynn Franco, director of Economic Indicators at the Conference Board, said in a statement. "Over the past few months, consumers have grown increasingly more upbeat about the current and expecgted state of the job market, and this turnaround in sentiment is helping to boost confidence.
Capital Economics, which attributed much of the improvement on lower gasoline prices, said it is "remarkable how consumer confidence in the U.S. has continued to improve."
To contact the editor, e-mail:
Join the Conversation
- Canada Jetlines Files For C$50 Million Airline IPO
- Plane Freezes in Russian Arctic, Passengers Push (WATCH VIDEO)
- With Falling Oil Prices All Eyes On OPEC Meeting
- This Is How Obesity Weighs Down Global Economy By 2 Trillion Dollars Every Year
- New Zealand's Job Expo In Sydney To Showcase 2,000 Wellington Jobs
- Black Friday And Cyber Monday Sale 2014: AT&T's Cricket Wireless Offers Discounts On Lumia 1320, Galaxy S5, S4 And HTC Desire 510
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates
- '$2,000 For Sex'—Pleads Unlucky-in-Love Guy On OKCupid
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- Lumia Update Will Come Soon Confirms Microsoft