NYT: Several Indicators Point to Brisk Economic Growth

New York Times ^ | July 28, 2005 | VIKAS BAJAJ

[OESY]

Sales of new homes and orders for durable goods rose faster than expected last month, the government reported yesterday, providing more indications that the economy is expanding at a brisk pace.

Separately, the Federal Reserve said that the economic expansion had picked up steam and that inflation remained at bay in June and early July.

The central bank's beige book, a periodic survey on economic conditions, noted broad strength in housing, manufacturing, tourism, consumer spending and banking.

New-home sales rose by 4 percent, to an annualized rate of 1.37 million in June, breaking a record set the month before, according to the Commerce Department. The latest figures come after a report earlier in the week that showed sales of existing homes also hit a record in June.

Economists were expecting 1.3 million new homes to be sold in June....

"The housing numbers are not surprising with mortgage rates as low as they are," said Anthony Chan, senior economist at JPMorgan Asset Management. "But low interest rates won't last forever."

Mortgage rates... have inched up a little in recent weeks but remain at historic lows.

The 30-year fixed mortgage rate averaged 5.73 percent last week, down from 5.98 percent this time last year but up from 5.66 percent earlier this month, according to Freddie Mac.

According to the Federal Reserve's survey, home sales remain strong nationally, but price and sales growth eased a bit in June and early July in some of the hottest markets, including New York, Washington, Florida and California.

The scene on the nation's factory floors was also vibrant. The Commerce Department reported yesterday that orders for durable goods, products expected to last three or more years, were up 1.4 percent in June after posting a 6.4 percent gain in May.

The increase beat economists' expectations....

[OldFriend]

Since the rest of the America hating media continues to spin the lies about how we have killed more people in Iraq than Saddam ever did, I am wondering what ever convinced Ivins to correct her lie.

[Mr. Jeeves]

Easy: the government keeps the official inflation rate low by only measuring sectors that aren't going up. ;)

"Stealth" inflation is raging. Accurately measure the rate by including oil, housing, food, and other sectors and I'll bet it's over 7% per year right now.

[The South Texan]

How did this get past the editor? Is the poor writer unemployed yet?

[RipSawyer]

It ain't even too stealthy. The only people who can't see it are the ones who refuse to open their eyes. We have reached the point that to be upper middle class in this country means earning in one year the gross income that my father had in his entire lifetime, and I am not sure that would even qualify.