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Business Title: Home Sales, Durable Orders Signal U.S. Economy May Withstand Europe Crisis May 26 (Bloomberg) -- Purchases of new homes jumped in April to a two-year high and orders for durable goods climbed the most in three months, signaling the U.S. economy strengthened before the European debt crisis gathered force. New-home sales increased 15 percent to an annual pace of 504,000 last month, the highest level since May 2008, while bookings for goods meant to last at least three years rose 2.9 percent, the Commerce Department said today in Washington. Stocks extended gains and Treasuries fell as the reports indicated the world’s largest economy may withstand a slowdown in Europe. While corporate investment will help sustain the U.S. manufacturing resurgence, the housing market may require faster job growth after the expiration of the government’s homebuyer tax credit. “The recovery has made a successful transition into a self-sustaining economic expansion,” said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania. “The economy has enough momentum, strength to digest reasonably gracefully what is going on in Europe.” The Standard & Poor’s 500 Index increased 0.7 percent to 1,081.87 at 11:40 a.m. in New York. The 10-year Treasury note declined, pushing the yield up to 3.22 percent from 3.16 percent late yesterday. Purchases of new homes jumped as buyers rushed to qualify for the government tax incentive. To receive the credit of as much as $8,000, contracts had to be signed by the end of April, meaning demand will probably wane in coming months. Transactions must close by June 30. Mortgage Applications Another report today from the Mortgage Bankers Association showed sales slowing this month. The Washington-based group’s index of home-purchase applications fell for the third straight week, to the lowest level since 1997. Economists forecast new-home sales would rise to a 425,000 annual rate in April, according to the median of 75 projections in a Bloomberg News survey. Estimates ranged from 370,000 to 450,000. The March sales pace was revised up to 439,000 from a previously reported 411,000. The surge in purchases helped draw down inventory. The supply of homes at the current sales rate dropped to 5 months’ worth, the lowest level since December 2005, from 6.2 months in March. There were 211,000 new houses on the market at the end of April, the fewest since 1968. Median Price The median price of a new home decreased to $198,400, the lowest level since December 2003. The jump in sales was concentrated in houses costing less than $300,000, perhaps reflecting demand from first-time buyers. Home sales increased in three of four U.S. regions last month, led by a 32 percent jump in the Midwest. Purchases in the Northeast were little changed. The Commerce Department’s report on durable goods orders showed bookings excluding transportation equipment unexpectedly fell 1 percent last month, coming off a revised 4.8 percent March jump that was the biggest in almost five years. Economists forecast total goods orders would rise 1.3 percent after no change in March, according to the median of 77 projections in a Bloomberg survey. Estimates ranged from a drop of 1 percent to a gain of 6.4 percent. Commercial aircraft orders, which are volatile, climbed 228 percent after dropping 71 percent in March. Bookings for non- defense capital goods excluding aircraft, a proxy for future business investment, decreased 2.4 percent in April after jumping 6.5 percent the prior month. Over the past three months, these orders climbed at a 22 percent annual pace, up from 15 percent in March, signaling companies are planning to invest in their plants. Effect on Growth Shipments of those items, used in calculating gross domestic product, increased 0.2 percent after increasing 2.3 percent in March. General Electric Co. Chief Executive Officer Jeffrey Immelt said May 24 that Europe’s debt troubles can be fixed and they’re not enough to slow a global economic recovery. “In Europe, I think this is going to be solvable; it’s going to mean slow growth,” for the region, Immelt said after his commencement address at Boston College. “I don’t think it’s enough to slow the recovery, I really don’t.” He also said the U.S. economy is “very good and improving.”
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#1. To: Brian S (#0)
...or may not.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
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