Saturday 24 August 2013

Europe shows more signs of recovery but US new home sales fall sharply

There were more signs on Friday that Europe's economy is recovering.

Germany confirmed that its economy grew 0.7 percent in the second quarter, its fastest growth rate in more than a year. Britain's second quarter growth was revised up to show the same increase as Germany's.

Confidence in the euro area is also returning. The consumer confidence indicator for the euro area rose to -15.6 in August, the highest level since July 2011, from -17.4 in July. Belgium's business confidence index rose to -8.6 in August from -12.0 in July.

In contrast, data from the US on Friday were negative.

US new home sales fell 13.4 percent in July even as the government revised its estimates for May and June lower. The sharp fall in July brought the annual rate of sales to 394,000 units, the lowest level in nine months.

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