I have been busy with rehearsals and singing recently, hence the lack of updates. Anyway, this is a short article taken from TODAY June 22.
US home sales, consumer spending rise
Consumer spending in the United States probably rose last month for the first time in three months and home sales increased as Americans became more confident the recession would end this year, according to economists in a Bloomberg survey.
Purchases advanced 0.3%, according to the median of 58 estimates in the poll, ahead of US Commerce Department figures due on Friday. Combined sales of new and existing homes likely improved to 5.18 million, capping the first back-to-back increase since 2006, the survey showed.
"There's more optimism as we get further away from last year's financial-market chaos," said Mr Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.
"Spending on the part of consumers seems to be picking up after a soft patch. It looks like the housing has bottomed." - BLOOMBERG
Sign of the things to come? Americans are heavy consumers, both imports and domestic products. An increase in consumer demand will boost demand for raw materials and employment, a good step in the recovery of the economy. Optimism and positive sentiment is the key to economic recovery, and lies in the mindset behind producers, consumers and investors. Afterall, the equity market is usually one step ahead of indicating what direction the economy is heading.
The STI remains sugglish for today, carrying on from last week's steady decline to Friday's 2273 level. Market sentiment is pretty weak and actually a good time to wait out as the moving averages are slowly leveling out and might go into a slight decline.
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