I find it fascinating that there are absolutely no stories about consumer confidence plunging or new home sale falling on the Marketwatch front page. They did have a huge banner headline about home prices at a six year high, without revealing that home prices had fallen in 10 of the 20 markets and only risen in 9 markets. The national price increase over the last year has been driven by a 21% increase in Phoenix and a 15% increase in Las Vegas. This has been generated by Wall Street using Bennie Bucks to buy up the inventory of foreclosures and create the appearance of a recovery.
Here is a link to the horrific consumer confidence index. The last time I checked, 71% of the economy was dependent upon consumer spending.
Does this info sound promising?
- The Present Situation Index decreased to 57.9 from 61.4. The Expectations Index declined to 60.9 from 72.4 last month.
- Those saying business conditions are “good” decreased to 16.0 percent from 17.6 percent, while those stating business conditions are “bad” increased to 29.3 percent from 28.2 percent.
- Those claiming jobs are “plentiful” decreased to 9.4 percent from 10.1 percent.
- Those expecting business conditions to improve over the next six months decreased to 14.4 percent from 18.0 percent, while those anticipating business conditions to worsen increased to 18.3 percent from 16.6 percent.
- Those expecting more jobs in the months ahead declined to 12.3 percent from 16.1 percent, while those expecting fewer jobs increased to 26.6 percent from 22.1 percent.
Here is the link to the New Home sales.
I thought we were in the midst of a housing recovery. Do new home sales fall in the midst of a strong housing recovery when mortage rates are at all-time lows? Does this chart reveal a housing recovery?
New home sales are ONLY 70% below the all-time high and about 40% below the 50 year average. Yeah, that sounds like a recovery. Pertinent facts from the report:
- The seaonally adjusted new home sales FELL 5%.
- There were a total of 33,000 new homes sold in the whole freaking country, with only 12,000 of them actually completed. The rest are under construction.
- Median home prices are 3% LOWER than they were 5 months ago.
The economic data reported today was dreadful and confirms that we are in a recession. How does the stock market respond? It soars by 100 points as the oligarchs celebrate their latest success in Cyprus. The truth is there if you choose to see it.
March Consumer Confidence Plunges As New Home Sales, Richmond Fed Miss
Submitted by Tyler Durden on 03/26/2013 10:11 -0400
Houston we may have a problem: with the DJIA trumpetedely hitting new all time highs day after day in March, one would expect that its traditional second derivative – US Consumer Confidence, would be at all time highs as well, or close thereby. One would be wrong, because according to the Conference Board, March consumer confidence plunged to 59.7 from 69.6, and well below expectations of a 67.5 print. Both components of the index dipped, with both the present situation and expectations indices sliding from 61.4 and 72.4, to 57.9 and 60.9, respectively. And just to make sure the S&P ramps to all time highs on ongoing miserable economic, corporate profit and, of course, sovereign insolvency news, we got both New Home Sales, dropping from 431K to 411K, missing expectations of 420K, and the Richmond Fed also missing expectations of a 6 print, dropping from last month’s 6 to 3. All in all, if this latest round of ugly and rapidly getting worse economic data doesn’t send the S&P to new all time highs, nothing will. Well, perhaps another European country going broke may do the trick…
Consumer Confidence biggest miss since June 2010…
and Richmond Fed missed expectations…
and New Home Sales missed too (its biggest miss in 4 months)…