Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Thursday 28 January 2016
US Financial Front:
Economists see more growth for US economy, housing in ‘16
ALEX VEIGA ing is finally moving at a Builders work on a home under construction in the Briar Chapel community of Chapel Hill, N.C.
AP Real Estate Writer much faster pace than the The National Association of Home Builders/Wells Fargo released a positive January 2016 index of
LAS VEGAS (AP) — A ro- economy.” builder sentiment.
bust U.S. economy and job U.S. homebuilders are en-
market, plus low mortgage tering 2016 feeling better (AP Photo/Gerry Broome)
rates, should help keep the about their sales prospects
recovery in the new-home than they have in years, stumble. Berson said. “The stock much faster than income,
market going at a modest thanks to rising home pric- There aren’t any major market is not a very good such as Dallas, or cities that
pace this year, but a return es and gradually improving signs pointing to that, how- leading indicator of the have been reliant on the
to pre-housing boom sales sales. ever, argued another pan- economy. I’m not terribly oil industry for jobs and are
and construction levels New-home sales climbed elist, David Berson, chief concerned that the econ- now being squeezed by
isn’t imminent. nearly 15 percent through economist at Nationwide omy is going to fall into re- the steel drop in oil prices.
That’s the forecast that Da- the first 11 months of last Mutual Insurance’s Nation- cession.” The residential construc-
vid Crowe, chief economist year, while construction wide Economics. He also predicted broad tion sector is still recovering
for the National Association of single-family homes hit “All of the economic data sustained growth for hous- from the housing bust and
of Home Builders, delivered an eight-year high in No- we look at in the last 50 ing this year. The exception: the Great Recession, which
recently during a panel of vember. The trends have to 100 years is not flashing Some of the markets where officially ended more than
economists at the trade as- helped lift construction warning signs right now,” prices have been rising six years ago.q
sociation’s latest industry hiring: Construction com-
convention in Las Vegas. panies added 215,000
And despite the U.S. econ- jobs last year, a 3.4 per-
omy’s mixed track record cent gain.Even so, sales
of growth in 2015, Crowe and construction have yet
projects that the economy to rebound fully from the
will expand 2.7 percent this housing bust nearly a de-
year, the strongest gain cade ago. Whether that
since before the Great progress continues this year
Recession in 2008, as con- will depend largely on the
sumer spending continues U.S. economy continuing
to grow. to improve. That’s come in-
“There are a number of creasingly into doubt late-
positive indicators out ly. Faltering growth in coun-
there that make me be- tries like China, the world’s
lieve ... this will be a good second-largest economy,
year for the economy and and financial market tur-
for housing,” Crowe said. moil have heightened
“Not only is housing finally concerns that the U.S.
driving some of that, hous- economy could be in for a
