Home Sales, Consumer Spending, Labor Market

November 25, 2015

Wednesday – November 25

The Commerce Department reported on Wednesday that sales of new single-family homes rose in October from September signaling that the housing market continues to steadily improve. New Home Sales were up 10.7% in October to an annual rate of 495,000, below the 504,000 expected. However, September was revised lower to 447,000 from 468,000. Sales in the Northeast hit their highest level since January 2010. Supply still remains a concern with just 5.5 months to clear out the current supply.

Consumer spending slipped in October as Americans saw their incomes rise, but opted to save their hard earned money rather than spend it on goods and services. Personal Spending was unchanged last month when expectations called for a 0.3% rise. Consumer spending accounts for more than two-thirds of U.S. economic activity and has been sliding in the past three months.

The Labor market continues to strengthen as evidenced by the low amount of Americans filing for first time unemployment benefits. The Labor Department reported that Weekly Initial Jobless Claims fell 11,000 to 260,000 in the latest week and below the 272,000 expected. Claims are now below the 300,000 mark for 38 consecutive weeks, the longest stretch in years, and are close to levels not seen since the early 1970s.