Pakistan PM says nation giving "Befitting Reply" to Indian strikes    Health Minister orders expansion of residency training programmes to strengthen medical workforce    Egypt steps up export reforms with focus on quality standards, market insights, and global expansion    Egypt's FRA warns against unlicensed financial investment schemes    Gaza faces humanitarian collapse amid escalating Israeli offensive, healthcare breakdown    CIB Egypt extends EGP 2.45bn bridge loan to SODIC for North Coast 'June' project    Al Ismaelia, Coventry University Cairo partner on urban development education    Egypt's net FX reserves rise to $48.144b in April – CBE    Egypt's EDA backs local vaccine industry    Eurozone services stagnate, manufacturing lifts growth    Oman, Algeria agree on $298m investment, energy deals    Cabinet hails WHO measles-free status as milestone in Egypt's health reforms    Egypt's Public Business Min., EHA chairman explore cooperation    Euronext supports EU defence financing with new measures    Egypt's business leader hails tax relief package as key to trust    Israel expands Gaza offensive, drawing international condemnation    Egyptian FM addresses Arab Women Organization Conference opening    Egypt's Sisi praises Bohra community's restoration efforts of Islamic sites    Egypt, Saudi Arabia deepen health sector cooperation with comprehensive MoU    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



More Weak U.S. Economic Data Puts Cracks In Weather Theory
Published in Amwal Al Ghad on 19 - 02 - 2014

U.S. homebuilder confidence suffered its largest one-month drop ever in February, heightening concerns that recent signs of weakness in the economy reflect deeper problems than the severe weather that has gripped much of the country.
The National Association of Home Builders said on Tuesday its Housing Market Index plunged by 10 points to 46 in February, with a majority of builders seeing market conditions as poor.
The NAHB, which produces the index together with U.S. bank Wells Fargo, said cold temperatures kept potential home buyers out of the market across much of the country.
But the trade group said high costs were also holding back the housing industry, and the data adds to worries the U.S. economy might actually be losing momentum following a year of break-out growth.
Poor weather usually drags on growth only temporarily as businesses and consumers put off purchases. If the recent slowdown in the economy is weather related, economists expect that the trend will reverse once temperatures turn higher and spur consumers to get back to spending.
"This report will keep alive concerns in the markets that the weakening in the data recently is not just due to weather," said Jim O'Sullivan, an economist at High Frequency Economics in Valhalla, New York.
Worries over the outlook for the economy have grown since reports showed weak hiring across the economy in December and January, when much of the country experienced unusually frigid temperatures.
Now signs of economic weakness are persisting into February.
Another report on Tuesday showed a gauge of manufacturing in New York state slowed in February.
The New York Federal Reserve Bank's Empire State general business conditions index fell to 4.48 from 12.51 the month before, which was a 20-month high. Economists polled by Reuters had expected a reading of 9.0. The survey of manufacturing plants in New York state is one of the earliest monthly guideposts to U.S. factory conditions.
Investors were caught off guard by the NAHB report, which marked the first time since May that the reading was below the key 50 mark. Readings below 50 mean more builders view market conditions as poor than favorable.
The Dow Jones index of housing stocks .DJUSHB fell 0.7 percent following the release of the data. All three of the home builders in the S&P 500 index -- Lennar Corp. (LEN.N), PulteGroup Inc. (PHM.N) and D.R. Horton Inc. (DHI.N) -- were more than 1 percent lower. More broadly, prices for U.S. stocks and yields on government debt were little changed.
The U.S. housing market has been cooling over much of the last year as the Federal Reserve prepared to wind down its bond-buying stimulus program. Expectations the program would come to an end have pushed borrowing costs higher.
Builders also are concerned that the industry can't keep up with demand. While this points to some underlying health in the sector, it also is a factor limiting the supply of homes, which helps push up prices and could put home out of reach for some buyers.
"Clearly, constraints on the supply chain for building materials, developed lots and skilled workers are making builders worry," the NAHB's chief economist, David Crowe, said in the statement from the group. "The weather also hurt retail
and auto sales and this had a contributing effect on demand for new homes."
Source : Reuters


Clic here to read the story from its source.