Tag Archives: housing market

Rebound in Construction Spending Continues

Construction spending rose 0.8% in May and held most of April’s bounce-back. The April data were revised down a bit, but March revisions now show that we were already seeing a comeback from the worse-than-usual winter by early spring. Gains during the most recent month occurred in both the public and private sectors, but were [...]

New Home Sales Surge

New home sales accelerated to a 546,000-unit pace in May. This data not only beat expectations but also comes after a strong upward revision to April. Both the Northeast and West posted increases from April

Home Sales Highest Since 2009

Existing home sales grew to 5.35 million on an annualized basis in May. That is the fastest pace of sales since November 2009 when sales were inflated by the temporary tax credit for first-time home buyers.

Housing Starts Down, Permits Up

Housing starts plunged 11.1% to slightly above the million-unit mark in May, after a surge in April. The correction in May from the April spurt was expected and somewhat offset by upward revisions to the April data. The housing market was playing catch-up in April after a dismal winter.

Consumers Emerge From Cave

Retail sales jumped 1.2% in May from April as hibernating consumers emerged from their caves. Vehicle sales fueled overall gains but were not as strong as we expected, given the near-record, 17.8 million-unit, annualized pace we saw for the month. Incentives were sweetened to drain dealer inventories. Some of the gains we saw also likely [...]

Ray of Sunshine in Construction

Construction spending surged at a much faster-than-expected 2.2% pace in April after the data were revised up significantly for the month of March. This is among the most sensitive of sectors to unusually harsh winter weather (especially more snow than usual) and confirms that at least a small portion of the weakness we saw in [...]

GDP Slips into the Red

Real GDP fell by 0.7% in the first quarter, almost one percent lower than initial estimates. The bulk of the slowdown may be attributed to a smaller-than-initially-reported buildup in inventories, slower consumer spending and stronger imports. The only upside revision was to residential investment, which reflects the glimmer of light we have seen in housing [...]

Housing Starts Snap Back in April

Housing starts snapped back in April after dismal reports for February and March. Total starts last month grew at a 1.14 million-unit, annualized pace on top of an upward revision to the previous month. Gains were led by the Northeast region

Construction Spending: Better than the Headline

Construction spending dropped 0.6% in March but was revised up a bit during the previous two months. Losses were concentrated in the public sector with a further pullback in spending at the state and local levels exacerbating losses at the federal level. Residential construction also retreated after better gains in January and February. The bright [...]

Another Downdraft in Growth

Real GDP rose an almost negligible 0.2% in the first quarter, marking the fifth time that the economy has slowed to a standstill or worse since the onset of the “recovery” in 2009. Some of the weakness may be attributed to transitory factors