US economic indicators on Tuesday came out good. Bloomberg reports:
U.S. consumer confidence climbed more than forecast and national home prices increased for the first time in three years, signaling government efforts to right the world’s biggest economy are starting to pay off.
The Conference Board’s confidence index rose to 54.1 in August, the first gain since May, as consumers became less concerned about the outlook for jobs, the New York research group said today. The S&P/Case-Shiller home-price index advanced 2.9 percent in the second quarter from the previous three months, the first increase since 2006 and the biggest in almost four years.
But the US government gave out mixed signals.
The reports underscore why President Barack Obama gave Ben S. Bernanke a vote of confidence today by nominating the head of the Federal Reserve to a second term as chairman. Indications the housing crisis that triggered the worst recession since the 1930s is dissipating boosted stocks even as the White House downgraded growth and deficit forecasts...
The White House Office of Management and Budget today forecast the economy will grow 2 percent in 2010, less than the 3.2 percent expected in May, and the contraction this year will be more than twice as deep as previously anticipated. Unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than the prior estimates, according to the mid-year review.