Investing.com - Financial Markets Worldwide

In Brief: US Growth Contracted Sharply, Home Sales Rise

ByBNP Paribas
AuthorPhilippe d'Arvisenet
Published 03/06/2013, 06:22 AM
Updated 03/09/2019, 08:30 AM
IMOB
-2.46%

As expected, US growth contracted sharply in Q4 2012, declining 0.1% after expanding 3.1% and 1.3% in the two previous quarters. Temporary factors that had fuelled the 3.1% increase in Q2 GDP gave way to a correction (chart 1). Looking beyond expected stock adjustments, which cut 1.2 points from growth, the decline in GDP can be attributed to much sharper-than-expected cutbacks in public spending, down 6.6% (after +13.3%), due to a 25.1% drop off in military spending (vs. +15.1% in Q3). Corporate investment declined 1.8% in Q3 due to a wait-and-see approach to fiscal uncertainty, but rebounded 8.4% in Q4. Household consumption was also up 2.2%, building on a 1.6% increase the previous quarter. The solidity of residential investment was confirmed by a 15.3% increase, following increases of 13.6% and 8.4% in the previous quarters.

Despite a 1% decline in December, existing home sales rose at an annualised rate of 23% in Q4, with house stocks accounting for 4.4 months of sales, down from 4.8 months in November and 5.3 months in October. New home sales increased 7% on an annualised basis in Q4, with stocks accounting for 4.9 months of sales in December. This argues for an ongoing rebound in construction and real estate prices. The NAHB index picked up strongly to 47 in December (vs. 14 in September 2011), while foreclosures accounted for only 11.8% of sales in December 2012, down from 19% in the year earlier period. The S & P / Case-Shiller house price index for the 20 largest metropolitan areas continued to rise, up 5.5% in the year to November, compared to 4.2% in October and 3% in September.

BY Philippe D'ARVISENET

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.