An increase in the Ifo Business Climate Index which measures the confidence level of German businesses, caught market watchers by surprise, rising to 106.9, up from 106.2 in July. Most analysts predicted a decrease in the index.
The news of German confidence has strengthened the European currency. The euro is currently 0.2% higher against the dollar with one euro buying $1.26. It also rose slightly against the pound, to 82 pence, making the pound worth 1.2177 euros.
Source: BBC News
The National Association of Realtors said today that its Pending Home Sales Index which measures contracts signed within the past sixty days, fell 16 percent to 96.0. This is the first drop in the index in nine months and is largely due to the expiration of a tax credit that provides up to $8,000 for first-time buyers.
Because of the popularity in the tax credit however, it has since been extended until mid-2010, and this, along with other strong signals from the housing sector, has industry experts remaining optimistic.
“The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own,” said Lawrence Yun, NAR chief economist.
“We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Reuters
Industrial output in the US increased in November as the US economy continues to gain strength heading into the new year. Output at factories, mines and utilities climbed 0.8 percent, after no change in October, the Federal Reserve said today in Washington. Manufacturing and mining rose, while warmer weather restrained utility demand. Capacity utilization, which measures the proportion of plants in use, increased.
“We’ll continue to see growth in manufacturing output, given strong exports and that consumers are spending,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who forecast a production gain of 0.9 percent. “You’re seeing a decent amount of breadth in terms of the increases.”
Powered by Efacilitators Hosting