U.S. New Home Sales Record Low
This week the three announced a sharp decline in U.S. new home sales and weaker business investment tends to signal a heavy blow to the U.S. market for the last trace of confidence in economic recovery.
These data are not the first reminder of the U.S. economy, “the second bottom” of the signal, but the recent series of indicators have been pointing to this being formed state. Goldman Sachs analyst report this week that the U.S. economy is “second bottom,” the probability of up to 25% to 30%.
U.S. Commerce Department data released Wednesday showed U.S. new home sales in July fell 12.4% on the rate, the total number of new home sales of only 276,000 years, less than economists had expected 330,000, as compiled in 1963, since the beginning of the data minimum. Median home prices in July fell 4.8% to 20.4 million.
Many U.S. local real estate agents agree that the excess supply of unsold homes, rising foreclosures and stricter lending standards mean that the weak sales data will continue.
As the real estate market and the broader context of the overall economy is closely related to the deterioration of housing sales has greatly increased the possibility of U.S. economic recession once again. West Chester Moody’s analysis of company data, housing construction and furniture, stoves and other housing-related spending, accounting for the second quarter gross domestic product (GDP) of 15%. Real estate market can also influence consumer spending there are other indirect, for example, in asset price inflation people tend to buy more when the cars and enjoy a longer holiday.
Since the federal government’s purchase tax exemption after the end of this year in April, the U.S. housing sales data from the false prosperity before the nosedive. Analysts believe that, since the beginning of the tax benefits of home buyers driving the demand are receding, but that became clear with the excess supply, prices will likely continue to callback.
At the same time, durable goods data, economists deep blow to the recovery of the last ray of hope, because this was the main driver of economic growth. U.S. Commerce Department data released Wednesday showed that in July of long-term durable goods (such as machinery, computers and electronic products, etc.) unexpectedly weak demand.
This means that in this economic crisis after the first round of the U.S. economic recovery helped to return to the driving force of growth has slowed down the pace and may even drag on economic recovery.
Seasonally adjusted, in July durable goods orders rose 0.3% to 193.02 billion U.S. dollars, substantially lower than economists had expected a rise of 3%. The net transport of the “core” showed orders for durable goods fell 3.8%, also significantly lower than the expected 0.5% rise, further increasing the degree of market disappointment.
RBS Research analyst, said in the report, “7 months of data deterioration is very disappointing, especially in capital spending outlook is more bleak than two months ago, under the situation. These data will undoubtedly cause the market to the manufacturing sector will concerns quickly lost the momentum of recovery. ”
BNP Paribas economist believes it is the uncertainty of the U.S. economy, exchange rate volatility and world trade slowdown a drag on business investment and other factors.
In the past quarter, the strong commercial demand helped the U.S. economy’s annualized growth rate of 2.4%, which in the previous quarter, business investment has up to 29% of the annualized growth rate. But economists expect the amendment to be announced this week the five data will show the U.S. economy in the second quarter growth of just 1.4%.
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