US New Home Sales Fall 12.4%

Sales of new homes in the US fell by 12.4 percent to an annualized rate of 276,000 units. This is the lowest rate since data was first collected in 1963 according to the Commerce Department and is seen by many as confirmation that the economy is slowing more rapidly than previously thought. Analysts are warning that this could suggest the third quarter could actually see a decline in growth.

“If you don’t get a pick up in the next couple of months, it sure looks like it’s possible the economy could contract in the third quarter,” said Keith Hembre, chief economist at First American Funds in Minneapolis, Minnesota.

Source: Reuters

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