Analytics firm CoreLogic reported this morning that home prices, including distressed sales, rose 6.9% from July 2014 through July 2015, while posting a 1.7% gain from June to July. “Home sales continued their brisk rebound in July and home prices reflected that, up 6.9% from a year ago,” said Frank Nothaft, chief economist for CoreLogic.The firm forecasts that prices will rise 4.7% from July 2015 through July 2016 and edge higher by 0.5% from July to August.
U.S. construction spending rose to its highest level in just over seven years as private outlays surged, which signals that third quarter economic growth has gotten off to a firm start. Construction spending rose by 0.7% to $1.08 trillion in July, the highest level since May 2008, as reported by the Commerce Department on Tuesday. In addition, private construction spending rose to an eight year high. Construction spending has now risen eight straight months and is up nearly 14% since July 2014.
The Institute of Supply Management (ISM) reported on Tuesday that national manufacturing eased in August due in part to low oil prices and a strong dollar. The ISM Index fell to 51.1 from 52.7 in July, the lowest reading since May 2013. In addition, new orders, a gauge of future production, plunged to 51.7 from 56.5, while the employment index fell to 51.2 from 52.7. A reading above 50 indicates that the manufacturing economy is generally expanding; below 50 indicates that it is generally contracting.
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