Page 7 - atoday
P. 7
U.S. NEWS A7
Tuesday 27 October 2015
US Financial Front:
American new home sales fall sharply in September
JOSH BOAK gan to exert a downward A ‘sold’ sign is posted in front of a new home under construction in Mechanicsville, Va. Sales
AP Economics Writer pull on economic growth of new homes plunged sharply in September to the slowest pace in 10 months, according to
WASHINGTON (AP) — Sales in recent months. Those Commerce Department report released Monday, Oct. 26, 2015, as higher prices and slower
of new homes plunged pressures could be spread overall economic growth weigh on the housing market.
sharply in September to the to the housing market if
slowest pace in 10 months, the drop in sales of new (AP Photo/Steve Helber)
as higher prices and slower homes leads to a decline
overall economic growth in construction. “A stron- Prices have climbed sharp- vanced from the depths The drop in sales increases
weigh on the housing ger pace of sales will need ly as well, making new con- of the Great Recession, the supply of new homes
market. The Commerce to be seen for the recent struction less affordable although it has yet to fully on the market. The Com-
Department said Mon- stronger pace of single- for would-be buyers. The recover from the bursting merce Department said 5.8
day that new-home sales family housing starts to be median new-home sales of the housing bubble and months’ supply of homes
slumped 11.5 percent last sustained,” said Ted Wiese- price has jumped 13.5 per- the 2008 financial crisis. were available at the end
month to a seasonally man, an economist at Mor- cent from a year ago to Sales of new homes remain of September, compared
adjusted annual rate of gan Stanley. $296,900. below the 52-year historic to a scant 4.9 months a
468,000, the lowest level Job gains slowed in Sep- The housing market has ad- average of 655,200. month ago. q
since November of 2014. tember, while profit mar-
September’s drop ended a gins for many of the largest
two-month streak of accel- U.S. businesses with a global
erating sales. Americans’ footprint stopped growing.
zeal for newly built homes The stronger dollar has pun-
took off this year — yet ished exports abroad and
now appears close to hav- cheaper oil prices have
ing topped out. Solid hiring forced energy firms to cut
over the past three years workers and slash orders for
has improved many fam- pipeline and equipment.
ily balance sheets, while The slowdown has yet to hit
rising home prices has re- sales of existing homes as
turned equity to current drastically, but the Septem-
homeowners now seeking ber pullback in newly built
to upgrade to new residen- properties was severe.
tial developments. Sales of Purchases of new homes
new homes have soared slid in the Midwest, South
17.6 percent during the first and West, but plummeted
nine months of 2015. a stiff 61.8 percent in the
But global pressures be- Northeast.
United Auto Workers, General Motors reach contract agreement
DEE-ANN DURBIN ately available. The UAW contract passed last week Fiat Chrysler, but negotia- GM reported last week that
AP Auto Writer said local union leaders by Fiat Chrysler workers — tors also were able to avoid it earned $1.36 billion in the
DETROIT (AP) — The United will meet Wednesday in gradually will eliminate a a walkout then. third quarter, including a
Auto Workers union and Detroit to vote on the ten- much-hated two-tier wage On Thursday, union mem- record $3.3 billion pretax
General Motors Co. have tative agreement. If they system in the plants. bers at Fiat Chrysler voted profit in North America on
reached a tentative agree- approve it, GM’s U.S. hourly GM said in a statement that to approve a four-year strong sales of trucks and
ment on a new four-year workers will vote on it. the agreement benefits contract that includes pay SUVs. The company over-
contract, avoiding a strike The agreement covers employees but still provides raises and phases out the came $1.5 billion in costs
for now. 52,600 U.S. auto workers at flexibility to the company. two-tier wage system over from recalls over deadly
The UAW said the agree- 63 GM facilities in the U.S. The company said it would eight years. ignition switches and beat
ment was reached at UAW President Dennis Wil- not comment further until Williams indicated that the Wall Street profit forecasts
11:43 p.m. Sunday, 16 min- liams said the proposed the agreement is ratified. union wanted even better by a wide margin.
utes before the deadline it deal will provide “long- The union told GM on Sat- deals from GM and Ford Executives said they be-
had set to either reach an term, significant wage urday that it would termi- Motor Co. because they lieve they can negotiate
agreement or call a strike gains and job security ben- nate its contract just be- are more profitable. The a union deal that lets GM
at GM’s U.S. plants. efits now and in the future.” fore midnight Sunday. The UAW hasn’t yet reached a maintain 10 percent pre-
Details of the proposed The union also hinted that UAW made a similar strike tentative agreement with tax profit margins in North
contract weren’t immedi- this agreement — like a threat in discussions with Ford. America.q
