Homebuilding: Economic Forecast & Indicators

The U. S. economy generally performed well for the first half of 2007 as measured by key economic indicators, such as: the gross domestic product, unemployment, consumer confidence and spending, retail sales, inflation, and individualised income. The tax revenue Domestic Product has stretch outed about the same skilful esteem as the secant half of 2006; however the rate has been uneven. The housing activity declined further in the indorse string of 2007 in response to the continued softness in ditch sales and still elevated inventories of unsold new homes (Federal Reserve). Businesses added jobs at a rate of 2-1/4%, with unemployment remaining at 4-1/2 percent. Consumer confidence rebounded in August 2007 as gasoline prices receded, resulting in an increase in consumer spending. Retail sales have seen a slight reduction mainly delinquent to the decline in home sales. The inflation rate has picked up mainly referable to energy and food prices, but continues to b e relatively low. Lastly, the personal income economic indicator reports that the U.S. Personal Income has increased by 0.4%. umteen economists believe that the United States economic activity appears poised to exaggerate at a moderate rate in the second half of 2007, and should strengthen gradually in 2008. However, the housing labor will continue to challenge many consumers and the economy in general.

The purpose of this paper is to provide final recommendations and strategic initiatives and play an in-depth analysis of each of the key economic indicators and how the forecasts will engrave the housing ind ustry. Consumer Confidence and SpendingThe c! onsumer confidence index is determined by the level of confidence consumers have based on pre-determined economic questions. The Consumer?s Confidence Index is computed each month, based on a surveying 5,000 households. The Rasmussen Consumer Index is derived from nightly telephone surveys of vitamin D adults and reported on a... If you want to get a rightful(prenominal) essay, order it on our website: BestEssayCheap.com

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