The state of the US economy is revealing signs of a rebound, based on recent reports. In addition to factory activity in the Mid-Atlantic going up, jobless assistance has also been declining. Althoughother sides to the economy are indicating improvement and promise, real estate data indicates a stressed economy.
The economic recovery is gaining a bit of speed lately. Layoffs are going down, manufacturing has been in good shape – and in a recent Reuters story Mark Vitner, a senior economist at Wells Fargo Securities, said we think that Gross Domestic Product may increase between three to 4 % in the fourth quarter.
Positive economic indicators have also been publicized by the Philadelphia Federal Reserve Bank, primarily that the business activity index rose to 24.3, which is the best rating that the business activity index has been since Spring 2005. The index this good is certainly a welcoming result, with any reading above 0 indicating expansion in an area, & with manufacturing output & most economists having expected a result reading of 15. Meanwhile, prices for US government debt came to a high close and the value of the dollar did very little when contrasted to the Euro, and actually went down slightly in comparison to the Yen.
What’s going on in the United States is fairly uncertain & will have a large affect on the worldwide outcome, said Dominique Strauss-Kahn, managing director of the International Monetary Fund. I do not have faith in the double-dip story, but a slowdown, that is the most important thing the global economy will be facing over the coming months.
In a separate finding, the Commerce Department discovered that real estate starts increased by 3.9%, with an annual rate of 555,000 units in November. Meanwhile, permits for future home construction dipped as they fell to a one year low.
The housing sector does not seem to be participating in the recently occurring improvement in the economy, stated Paul Dales, who is a U.S. economic expert at Capital Economics.
As consumer spending rises and labor market conditions continue to show mild improvement, studies show that the manufacturing sector has been the most significant driving force. Economists believe the growth here has been largely driven by the growing export market – which, as a result, could result in stronger job opportunities. While jobless stats for December are not yet available, economists state initial numbersshould signal a better gain from payrolls.
The trend in claims has decreased by approximately 20,000 between November and December payroll survey weeks, according to Ian Shepherdson, who is the chief U.S. economist at High Frequency Economics. It means private payrolls are approximately 50,000 stronger December than in November, with all other things equal. We feel that the lessening of credit anxieties on small firms is bringing claims down, & there are further declines in the future.
While talking about the real estate market, it is vital to keep in mind all real estate is local. The local market in Austin should be dramatically different than that in Sarasota. Specific sub-markets even within each locality can vary greatly. Condo markets in a lot of different areas were damaged significantly, while the residential markets are relatively holding up. Multiple nationwide news outlets report as though there’s a nationwide real estate market, and is simply not the case.
Learn more about the Real Estate Market or learn about the Austin market & see active listings in Lake Austin Real Estate for sale.
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