Wednesday, 20 June 2007

US housing starts, German investor confidence fall

The news yesterday was not too positive.

Bloomberg reports that US housing starts fell in May.

Home starts in the U.S. fell for the first time in four months in May as interest rates rose, suggesting the worst housing recession in 16 years will persist.

Builders broke ground on new houses at an annual rate of 1.474 million, down 2.1 percent from the prior month, the Commerce Department said today in Washington. Building permits increased 3 percent to 1.501 million.

Bloomberg also reports that German investor confidence fell in June.

German investor confidence unexpectedly fell in June as borrowing costs climbed, suggesting economic growth may have reached a plateau.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations declined to 20.3 from 24 in May. Economists expected a reading of 29, according to the median of 38 forecasts in a Bloomberg News survey.

In contrast, the Ticker Sense Blogger Sentiment Poll has recently risen to a level where it "has never been this bullish".

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