Home starts, US economic outlook in April up
Monday, 18 May 2009
WASHINGTON, May 17 (Bloomberg): Builders probably broke ground on more houses in April and a measure of the US economic outlook rose for the first time in almost a year, adding to signs the recession was abating, economists said before reports this week.
Housing starts increased 2 per cent to an annual rate of 520,000 last month, according to the median forecast of economists surveyed by Bloomberg News before a Commerce Department report on May 19. The index of leading economic indicators probably climbed 0.8 per cent, figures from the Conference Board may show.
An easing in the housing slump, now in its fourth year, is an essential element of most forecasts for an economic recovery later this year. Rising stock prices and improving consumer confidence are among the components of the leading index that are stoking speculation the economy will begin to grow again in the next six months.
"Starts reached their trough earlier this year and are going to be on a very slow path to recovery through the rest of the year," said Zach Pandl, an economist at Nomura Securities International Inc. in New York. "It does look like the recession is coming to an end."
The leading indicators index, a measure of the economy's likely path over the next three to six months, is due from the New York-based private research group on May 21.
Commerce's housing report may also show building permits, a sign of future construction and another component of the leading index, rose 2.7 per cent to a 530,000 rate in April from the prior month's record low.
Housing data in recent weeks have shown signs of stabilization. Existing home sales, while reaching a decade-low in January, have held within a narrow range centered on a 4.6 million annual pace over the last five months. Sales of new houses, while still depressed, have bounced from a record low reached in January.
Housing starts increased 2 per cent to an annual rate of 520,000 last month, according to the median forecast of economists surveyed by Bloomberg News before a Commerce Department report on May 19. The index of leading economic indicators probably climbed 0.8 per cent, figures from the Conference Board may show.
An easing in the housing slump, now in its fourth year, is an essential element of most forecasts for an economic recovery later this year. Rising stock prices and improving consumer confidence are among the components of the leading index that are stoking speculation the economy will begin to grow again in the next six months.
"Starts reached their trough earlier this year and are going to be on a very slow path to recovery through the rest of the year," said Zach Pandl, an economist at Nomura Securities International Inc. in New York. "It does look like the recession is coming to an end."
The leading indicators index, a measure of the economy's likely path over the next three to six months, is due from the New York-based private research group on May 21.
Commerce's housing report may also show building permits, a sign of future construction and another component of the leading index, rose 2.7 per cent to a 530,000 rate in April from the prior month's record low.
Housing data in recent weeks have shown signs of stabilization. Existing home sales, while reaching a decade-low in January, have held within a narrow range centered on a 4.6 million annual pace over the last five months. Sales of new houses, while still depressed, have bounced from a record low reached in January.