Wednesday, August 25, 2010

Ok, the new home sales data was not pretty

The new home sales data was shockingly bad, but if you've been paying attention you should know that the new home buyer tax credit pulled forward demand into April that would have normally existed in May, June, July, etc.
"Sales of new single-family houses in July 2010 were at a seasonally adjusted annual rate of 276,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.4 percent (±10.8%) below the revised June rate of 315,000 and is 32.4 percent (±8.7%) below the July 2009 estimate of 408,000."
More troubling might be the HUGE plunge from July of '09. This is likely going depressed Q3 GDP and I'd expect we'll see another round of GDP estimate cuts in the coming weeks from the most consistently surprised people in America - economists.
On a related note, I searched "unexpected" in google trends and the result was not unexpected.

Clearly, there have been many more unexpected events in 2010 :)

QOTD from the American Trucking Association's economist "The economy is slowing and truck freight tonnage has essentially gone sideways since April 2010.”

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Google launched their version of Skype today without video chat. It seems pretty simple to use, but unfortunately the service has been down all day. Not very google-like to offer a service that isn't ready for primetime, but we'll see how this plays out.

Cheers!

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