Home Price Index --
The S&P/Case-Shiller home price index rose less-than-expected in August, industry data showed on Tuesday. In a report, Standard & Poor with Case-Shiller said its house price index rose by 1.7% in August, after rising by 3.2% in July which fell short of analyst expectations of 2.0%.
Commenting on the report, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, ''Home prices broadly declined in August, indicating that the housing market continues to bounce along the recent lows.'' Mr. Blitzer continued, ''The housing market appears to have stabilized at new lows. At this time, it does not seem that any of the markets are hanging on to the temporary momentum caused by the homebuyers’ tax credits.''
Consumer Confidence --
Data showed that the U.S. consumer confidence rose more-than-expected in October. In a report, the Conference Board, said its index of consumer confidence rose to 50.2 in October, after falling to 48.6 in September, a figure that was revised from 48.5. The figure topped estimates of 49.0.
The report also showed that the CB index of consumer expectations rose to 67.8, compared to 65.5 in September.
Commenting on the report, Lynn Franco, director of The Conference Board Consumer Research Center, stated, ''Consumer confidence, while slightly improved from September levels, is still hovering at historically low levels. Consumers’ assessment of the current state of the economy is relatively unchanged, primarily because labor market conditions have yet to significantly improve.'' Ms. Franco continued, ''Despite the uptick in Expectations, consumers continue to be quite concerned about the short-term outlook. Both present and future indicators point toward more of the same in the coming months.''
Richmond's Manufacturing Index --
The Federal Reserve Bank of Richmond's Manufacturing Index rose to 5 in October; up from minus 2 in September and higher than the forecast of minus 1. Manufacturing activity in the central Atlantic region advanced modestly in October, following a slight pullback in September, according to the Richmond Fed's latest survey. Looking at the main components of activity, shipments and employment edged back into positive territory while the volume of new orders posted solid gains.
Other indicators varied. District contacts reported that growth in order backlogs was virtually unchanged, while delivery times grew more slowly. Furthermore, manufacturers reported that capacity utilization grew at a faster pace, while inventories grew at a slightly slower rate.
