Daily News 11/25/14
November 25, 2014
Tuesday – November 25
The lofty home price gains seen in 2013 are quickly fading to more sustainable levels in 2014. The September Case Shiller 20-city Home Price Index rose by 4.6% from September 2013, the slowest gain in two years. The 4.6% is down from the August annual rate of 5.6%, but above 4.6% expected. September saw a 0.3% gain, which was the first positive reading since April. A spokesman for Case Shiller said “the overall trend in home price increases continues to slow down.”
Consumer Confidence unexpectedly slipped in November after a strong reading the month before declining to 88.7 from 94.1 in October. The 88.7 was below the 96.0 expected. Lynn Franco, Director of Economic Indicators at the Conference Board said, “Consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook.” Within the report it showed that consumer assessment of the job market was slightly less favorable than the October reading.
Economic growth across the nation continued to be solid in the third quarter of 2014 led by stronger consumer and business spending. The second estimate for third quarter 2014 Gross Domestic Product (GDP) rose by 3.9%, up from the initial reading of 3.5%, which was above the 3.2% expected. The weak gains seen earlier this year, due to the harsh winter weather, have quickly faded. For the past six months GDP rose by 4.2%, the strongest stretch since the middle of 2003. Combining all three quarters this year, GDP is running at a 2.1% pace, not a real good number, but has been improving. GDP measures goods and services produced across the economy.