Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

U.S. residential investment likely to be supportive to GDP growth in Q3

The modest rise in U.S. new home sales in June was encouraging, rising 0.8 percent to 610,000 unit rate. However, revisions to earlier months removed 27,000 sales that dulled the June reading. On the contrary, some readings imply inventory pressures eased a bit.

Inventory of homes for sales rose and the median price dropped 4.2 percent that resulted from a shift toward lower-priced homes aiding first-time homebuyers. Most of the rise in June was for homes that had not yet began construction. Construction of new residential homes gave a major boost to economic growth in the first quarter; however, was softer in the second quarter. Residential investment in the third quarter is expected to be more supportive to GDP growth, as demand for new homes continue to be strong, noted Wells Fargo in a research report.

At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -62.4193. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.