Consumer confidence rises, but housing market remains flat

Consumer confidence in the U.S. increased in November, rising to its highest level in five months. The Conference Board’s sentiment index rose to 54.1, exceeding estimates by a Bloomberg survey of economists that it would increase to 53. Meanwhile, the Institute for Supply Management’s business gauge rose to it highest since April, indicating that business activity also is increasing.

December 01, 2010

Consumer confidence in the U.S. increased in November, rising to its highest level in five months, according to a report by Bloomberg. The Conference Board’s sentiment index rose to 54.1, exceeding estimates by a Bloomberg survey of economists that it would increase to 53. The Institute for Supply Management-Chicago Inc.’s business gauge rose to it highest since April, indicating that business activity also is increasing.

The numbers show that an economic recovery is gearing up, but this may not include the housing market. According to the report, housing remains the economy’s “weakest link,” as evidenced by the most recent S&P Case-Shiller index in home values, which showed a decrease in home prices between August and September. Karl Case, a co-founder of the index, predicted that home prices would likely remain flat in the near future. The report cites the end of the homebuyer tax credit and high unemployment rates as delaying the housing market’s recovery.

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