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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Pending Home Sales, Manufacturing Up

A trio of economic data just hit moments ago, so we'll break it down like this:

-- Pending home sales in July rose 3.2 percent compared with June and 12 percent compared with July 2008, according to the National Association of Realtors. This represents the sixth straight month of inclines. This number represents contracts signed, and one-third of the buyers were first-timers, taking advantage of the $8,000 first-time home buyer credit, which expires at the end of November.

This figure is clearly being goosed by the $8,000 credit, and that goes away in the worst time of the year to try to sell a house, the winter. So there could be a pullback in pending home sales come Christmas, especially if the markets pull back as well.

-- The Institute for Supply Management's manufacturing index broke 50 for the first time since January 2008, coming in at 52.9. Here's what that means: The ISM index is a key measure of manufacturing in this country, and any number below 50 means the economy is in contraction; any number over 50 means it's in expansion.

This is a significant bridge crossed in economic recovery because it means that manufacturers have burned down as much of their inventory as they feel comfortable with and are launching new purchase orders, which means jobs.

-- Construction spending for July was down 0.2 percent, which is in line with expectations, the Commerce Department said, following a blip up in June. This number will hop around until it looks like there's real traction in the recovery.

-- Frank Ahrens
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By Frank Ahrens  |  September 1, 2009; 10:21 AM ET
Categories:  The Ticker  | Tags: ISM, construction spending, home sales  
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Next: Ford August Sales Surge 17%, Toyota Up 10.5%, Chrysler Down 15.4%; GM Up Since July

Comments

Those manufacturing jobs are OFFSHORE! Those manufactured goods created are merely *imported* into this country, by some U.S. business. This isn't a sign of economic improvement. It is a sign of economic suicide. When a U.S. based company is allowed to exist here, to use our infrastructure, their executives even allowed citizenship, and they export jobs and factories, it is economic treason and detrimental to the continued existence of this country. Only 5.6% if our exports are for manufactured goods, 60% of our imports are manufactured goods, with most of the remaining being oil imports. 80% of our exports are of raw materials, No country can survive under this sort of twisted and bankrupt trade scheme and we either end it or die.

Posted by: mibrooks27 | September 1, 2009 11:47 AM | Report abuse

Oh, and I just checked the "fine print" on that housing report. The *majority* of those homes were sold to investors, NOT home owners. Worse, the largest sector of those investors were CHINESE. The Chinese government, fearful of the plunging dollar, are buying up real estate.

Posted by: mibrooks27 | September 1, 2009 11:50 AM | Report abuse

I agree wholeheartedly. I just can't understand why economists have not said a word. For thousands of years it was understood that a country, village, town or cave that couldn't grow their own food or necessities would make or manufacture things that they could trade with. It's upside down now and all our necessities are made overseas and we don't have a thing to trade with. This is basic and American owned corporations manufacturing in foreign countries are the true betrayers of our country.

Posted by: gottaholler | September 1, 2009 12:31 PM | Report abuse

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