Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Wednesday 30 March 2016
US Financial Front:
Wall Street rebound helps lift US consumer confidence
PAUL WISEMAN A shopper walks out of the Sephora store in the Shadyside sec- “The rebound in stock mar- ing results for January and
AP Economics Writer tion of Pittsburgh. On Tuesday, March 29, 2016, the Conference kets more than offset the February, this pickup in
WASHINGTON (AP) — U.S. Board reported on U.S. consumer confidence for March. impact of higher gasoline confidence is good news,”
consumers are feeling prices in recent weeks,” said Jennifer Lee, senior
more confident in March, (AP Photo/Gene J. Puskar) Steve Murphy, U.S. econo- economist at BMO Capital
with a rebounding stock mist at Capital Economics, Markets.
market brightening their than 10 percent this year pected stocks to rise over wrote in a research note. Murphy at Capital Eco-
outlook. through mid-February. It the next year. That was up Over the past month, the nomics estimates that
The Conference Board said has since recovered most from 26.9 percent in Febru- average U.S. price of a gal- consumers’ outlook is con-
Tuesday that its consumer of those losses. ary, the lowest share since lon of gasoline has risen to sistent with 2.5 percent to
confidence index rose to This month, 28.7 percent July 2012. $2.04 from $1.75, accord- 3 percent annual growth
96.2 this month after tum- of consumers said they ex- ing to AAA. in spending. Consumer
bling to a revised 94 in Feb- A year ago, the overall spending last year in-
ruary. consumer confidence in- creased 3.1 percent.
Consumers’ assessment of dex stood at 101.4. But The government said last
current economic condi- Americans have grown week that the economy
tions has dipped. But their cautious about spending. grew at the end of 2015 a
outlook for the future has Consumer spending grew bit faster than it had origi-
improved modestly. at a meager 0.1 percent nally estimated. And em-
The U.S. stock market got annual rate in February, the ployers added a healthy
off to a dismal start in 2016, government said Monday, 242,000 jobs last month,
driven by fears of eco- matching January’s unim- helping keep the unem-
nomic weakness overseas pressive gain. ployment rate at an eight-
and plunging oil prices. The “Given the very disappoint- year low 4.9 percent for a
Dow Jones industrial aver- ing real consumer spend- second straight month.q
age had plummeted more
US home prices rise up faster
than incomes during January
JOSH BOAK rates and steady hiring
AP Economics Writer have sparked demand.
WASHINGTON (AP) — U.S. Denver, Portland, San Fran-
home prices climbed at cisco and Seattle each
more than double the rate registered double-digit an-
of incomes in January, a nual price increases. Home
trend that could ultimately values rose in all 20 metro
create affordability chal- areas markets, which ac-
lenges for buyers. count for roughly half of
The Standard & Poor’s/ the U.S. housing stock.
Case-Shiller 20-city home The index remains more
price index rose 5.7 per- than 11 percent below its
cent from a year earlier, a mid-2006 peak, when sub-
slight increase from the 5.6 prime mortgages pushed
percent annual increase in the market to heights that
December, according to a triggered the Great Reces-
report Tuesday. sion in late 2007.
“The pace of U.S. home Existing homes sold at a
value growth has been seasonally adjusted annual
picking up bit-by-bit over rate of 5.08 million in Febru-
the past few months, driven ary, the National Associa-
in large part by stubbornly tion of Realtors said earlier
low inventory in most mar- this month. Sales dipped
kets that creates competi- 7.1 percent from a relative-
tion and drives up prices for ly healthy pace in January,
those homes that are avail- but an increase in the num-
able,” said Svenja Gudell, ber of signed contracts to
chief economist at the real buy houses indicates that
estate firm Zillow. purchases should rebound
Home values have risen in March.
2.6 times faster than aver- Despite the demand, list-
age hourly wages, which ings in February declined
have improved just 2.2 1.1 percent from a year
ago. Many homeowners
percent, according to a are reluctant to sell, be-
cause they lack the equity
government report earlier to cover the down pay-
ment for upgrading to a
this month. Tight supplies of new house.q
homes on the market have
fueled much of the price
growth, as low mortgage
