It's The Economy Stupid: Consumer Not So Confident, Housing Comes In From The Cold

Consumer Not So Confident, Housing Comes In From The Cold

 

Economic Event	Period	Economic Survey	Actual Reported	Original Prior	Revised Prior
Consumer Confidence	DEC	70.0	65.1	73.7	71.5
New Home Sales	NOV	380K	377K	368K	361K
New Home Sales MoM	NOV	3.3%	4.4%	-0.3%	-3.5%

 

Consumer Confidence in U.S. Fell More Than Forecast in December. 

 

Confidence among U.S. consumers declined more than forecast in December as the budget debate in Washington soured Americans’ outlook for the economy.  The Conference Board’s index of sentiment fell to 65.1 from a revised 71.5 reading the prior month. The gauge was projected to fall to 70, according to the Bloomberg survey median.

 

A drop in consumer expectations for the next six months to a one-year low coincides with mounting concerns about looming tax increases and government budget cuts in 2013 that threaten the expansion. At the same time, employment gains, rising home values, and lower gas prices may keep spending, which accounts for about 70 percent of the economy, from foundering.

    

Sales of New U.S. Homes Increased in November to Two-Year High.

 

Sales of new houses rose in November to the highest level in more than two year, the latest sign that the real-estate market is helping lift the U.S. economy.

 

Purchases climbed 4.4 percent to a 377,000 annual pace, the most since April 2010, following a revised 361,000 rate in October, the Commerce Department reported today in Washington.  The median estimate of 71 economists surveyed by Bloomberg called for sales to increase to 380,000.

 

Low mortgage rates and dwindling foreclosures are stabilizing prices and attracting buyers more than three years after a recession that was fueled by the industry’s collapse.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury