Article Number : 4745 |
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| Date | 8/14/2009 9:20:59 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4745 |
| Abstract | HOME SWEET HOME: Inexplicably, June sales of new homes had its largest monthly gain in nearly eight years, according to the Commerce Department. Some see that as a sign that the housing market is bottoming out as buyers take advantage of... |
| Article | HOME SWEET HOME: Inexplicably, June sales of new homes had its largest monthly gain in nearly eight years, according to the Commerce Department. Some see that as a sign that the housing market is bottoming out as buyers take advantage of lower prices. The government reported that sales of new single-family homes rose 11% in June; economists expected a 3% increase. The pace of home sales rose to a seasonally adjusted rate of 384,000 a year, the highest level since November. Despite the monthly increase, sales of new homes were down 21% since June 2008. The market is still buried under a glut of for-sale houses. And new homes, facing strong competition from inexpensive foreclosures, are on the market for close to a year before they sell. We’re not there yet, but it’s improving. HERE’S WHY: Business forecasters polled by the National Association for Business Economics (NABE) are feeling a bit less gloomy about the future and expect the economy to emerge from the recession this year. The NABE survey of 102 economists and forecasters provides new evidence the recession is abating, but few signs of an immediate recovery. There is a broad consensus in the study that the worst of economic conditions will be over this year: 86% of those surveyed expect sales will hit bottom by the end of the year, while 14% see the bottom happening next year or later. The survey also found that credit remains a concern: 54% say difficulty continues in obtaining loans and that had a negative impact on operations in the second quarter, up from 45% in the first three months of the year. A bit less gloomy is not a bit more optimistic. HERE’S PROOF: The index of leading economic indicators rose 0.7% in June, the third straight monthly gain, the Conference Board said, signaling a recovery is likely in the second half of the year. I’m beginning to believe there’s a glimmer at the end of the tunnel. Over the past six months, the index has improved at a 4.1% annual rate, up sharply from a negative 6.2% rate in the prior six months. This is the fastest pace since the first quarter of 2006. Seven of the 10 indicators increased in June. The positive contributors— beginning with the largest—were interest-rate spread, building permits, stock prices, weekly initial claims, average weekly manufacturing hours, index of supplier deliveries, and manufacturers’ new orders for consumer goods and materials. The negative contributors were real money supply, manufacturers’ new orders for non-defense capital goods, and index of consumer expectations. Well, my expectations are improving with every improved report. GIVING BACK: Billionaire Warren Buffett, chairman and CEO of Berkshire Hathaway, parent company of Shaw Industries, will star in a kids’ cartoon to be released on the Internet this fall. Youngsters will have a chance to learn financial lessons from the Omaha Oracle, who will star in “The Secret Millionaire’s Club,” a presentation designed to teach them financial principles, such as avoiding debt. “What better time to help educate our kids about financial responsibility,” said Buffett. He is donating his time to the project and said he hopes it will be fun and informative. It will be. SAD NEWS: Emails from several Bigelow retirees informed me of the passing Seymour Bernstein on June 9 at the age of 83. Sy had a difficult time the past two years, having been diagnosed with Alzheimer’s. He spent a month in the hospital and died of complications from pneumonia and respiratory failure. He spent decades as Bigelow’s contract salesman in New York and many of his colleagues called him “a legend.” He lived in Forest Hills, N.Y., with his wife, Edith, of 50 years. |