U.S. economy keeping head above water: report

WASHINGTON — Say what you want about the U.S. economy, but it simply refuses to be tagged with the ‘R’ word. No, not ‘recovery.’ Recession.

In a bit of surprise good news, durable goods orders rose in June, the biggest jump this year, and even new home sales beat analysts’ predictions, the U.S. Census Bureau reported.

New orders for manufactured durable goods in June increased $1.6 billion or 0.8 percent to $215.4 billion — the second consecutive monthly increase, following a 0.1 percent May increase. Excluding transportation, new orders increased 2 percent.

Shipments of manufactured durable goods in June, up two of the last three months, increased $1.1 billion or 0.5 percent to $212.2 billion. This followed a 1.2 percent May decrease.

Another key economic indicator, new home sales — which have been pummeled in the last couple years — didn’t fall as deep as forecasted. Sales of new one-family houses in June were at a seasonally adjusted annual rate of 530,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.

This is 0.6 percent below the revised May rate of 533,000 and is 33.2 percent below the June 2007 estimate of 793,000.

However, it beat analysts’ consensus forecast, which was 505,000 units.

With home prices falling significantly in many areas, buyers are being lured back into the market, and homes are becoming affordable for many first-time buyers.

In a June 25 article, Fortune magazine‘s Shawn Tully reported, "Builders have slashed prices, and what they’re building tends to be far smaller than the McMansions of the boom, selling for far lower prices … So the first time in a decade renters can carry the mortgage payments and taxes on a new house for what they’re paying a landlord. Call it the New Affordability."

— via Truckinginfo.com