In yet another sign that the U.S economy is ready to rebound, existing home sales jumped 7.2% is July - the largest monthly increase in the last 10 years.
The chart below details Existing Home Sales:
More regarding this terrific news below and via this MSNBC link:
http://www.msnbc.msn.com/...
Econoday (2009) sums up the salience of this data as follows:
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy
Investors are already responding positively to the news, with Dow industrials already up 124.09 (+1.33%) to 9474.14 as of 10:48 AM.
It is very easy to be bogged down with lagging indicators - such as initial and continuing jobless claims (both of which provided disappointing figures when released on Thursday). However, it is important to recognize that there are many other improving facets to the U.S economy that point toward meaningful recovery - including this housing data and the recently released nonfarm productivity numbers:
When he first began writing his optimistic pieces regarding recovery from this recession, I was skeptical of bonddad's diaries. However, as I analyze aggregate economic data, I am beginning to believe his assertion that the worst is behind us and full-blown recovery and economic growth may be upon us.
Update
Evidently, I'm not the only economist subscribing to this line of thought. Fed Chairman Bernanke was just quoted as saying:
Economic activity in both the U.S. and around the world appears to be leveling out and the prospects for a return to growth in the near term appear good