Check out the latest from the respected Economists of the National Association of Home Builders. Click the link at the end of the paragraph for a detailed report.
First-Quarter GDP Hammered by Temporary Collapse of Business Spending
Real gross domestic product (GDP) contracted at an annual rate of 6.1% in the first quarter of this year, according to the “advance” estimate released by the Commerce Department on April 29. This was a deeper decline than the prevailing consensus estimate – NAHB expected a 5.2% contraction – and was nearly as deep as the 6.3% decline in the final quarter of 2008. (Click here for more.)
Swine Flu ‘Pandemic’ Is Not a Major Economic Event
For a while, it looked like the outbreak of swine flu could have major negative implications for the U.S. and global economies, particularly when the authorities declared that the geographic scope of the disease had reached “pandemic” proportions. After all, a serious and uncontrollable flu would take a major toll on the labor force, working hours and productivity, as well as on certain industries here and abroad – including travel and hospitality services. (Click here for more.)
FOMC Holds Steady at April 29 Meeting
As expected, the Federal Reserve held monetary policy steady at the April 29 Federal Open Market Committee (FOMC) meeting. (Click here for more.)
Supply-Demand Balance Is Improving in New-Home Market
The massive cutbacks in single-family starts since early 2006, particularly in the for-sale component of the market, have resulted in substantial reductions in the overhang of new homes for sale from the highs of 2006 to 2007. The months’ supply is still on the high side – 10.7 in March – but that number is subject to substantial decline as sales move up from the record low posted at the beginning of this year. (Click here for more.)
Fed Chairman Expects Improvements in Housing and the Economy
Testifying before Congress’ Joint Economic Committee on May 5, Federal Reserve Chairman Ben Bernanke said recent data suggest that the pace of contraction in economic activity “may be slowing” and noted that the housing market “has shown some signs of bottoming.” (Click here for more.)