Daily News 2/27/2015
February 27, 2015
Friday – February 27
U.S. economic growth eased a bit in the fourth quarter of 2014, led lower by a decline in stockpiles and trade gap. The Gross Domestic Product (GDP) rose by 2.2% in the second reading, down from the 2.6% originally reported. For all of 2014, GDP was up 2.4%. Within the report it showed that consumer spending surged 4.2%, the largest gain since 2010. The housing gauge saw a 3.4% increase for residential investments, up from 3.2% in the third quarter. GDP measures goods and services produced across the economy.
Consumers across the nation felt the February chill as the Consumer Sentiment Index fell from an 11-year high in January, coming in at 95.4 from 98.1. Prices at the pumps did rise during February and should continue to rise as the warmer weather approaches. However, an improving job market and economy, low inflation, and rock bottom interest rates should keep consumer spending at robust levels. Americans views of their personal finances fell in February, while inflation expectations are trending higher.
The National Association of REALTORS® (NAR) reported on Friday that Pending Home Sales rose by 1.7% in January to a level of 104.2, the highest level in 18 months. All major regions except for the Midwest saw gains in activity in January. Pending Home Sales are up 8.4% from January 2014. And this from Lawrence Yun, the NAR chief economist, “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”
