Slowdown Concern Ebbs on Durable Goods, U.S. Home Sales |
| Bloomberg - Jun 27, 2012 |
Orders for durable goods and the number of Americans signing contracts to buy an existing home rebounded in May, easing concern the world’s largest economy is faltering.
Bookings for goods meant to last at least three years rose 1.1 percent, the first increase since February, a Commerce Department report showed today in Washington. Pending home sales climbed 5.9 percent after slumping 5.5 percent in April, according to data from the National Association of Realtors.
Stocks rallied as the figures indicated manufacturing, a mainstay of the economy, was holding up amid a global economic slowdown that’s curbing demand for exports and hurting sales at companies like Joy Global Inc. (JOY) Housing, the industry that triggered the recession, may keep improving as record-low mortgage rates spark buyer interest.
“The economy is growing, but it’s still muddling through,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, who forecast a gain in durables orders and pending home sales. “Concerns about the collapse of manufacturing are grossly overblown. We’re in a housing recovery.”
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- Posted: 2012-06-27 14:32:43
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