GDP Grew 4.9%, Above Estimates; New-Home Sales Rise
November 29 2007
Source: CreditandCollectionsWorld.com and SourceMedia, Inc.
Real gross domestic product increased at an annual rate of 4.9% in the third quarter of 2007, according to preliminary estimates from the Bureau of Economic Analysis. This compares with advance estimates of 3.9% and with real GDP growth of 3.8% in the second quarter ended June 30.
The increase reflected positive contributions from exports, personal spending, inventory investment, government spending and nonresidential building, which were partly offset by a negative contribution from residential fixed investment. Personal spending rose 2.7% in the third quarter, compared with 1.4% in the second.
Sales of new one-family houses in October rose 1.7%, compared with September, to a seasonally adjusted annual rate of 728,000, according to estimates from the Census Bureau and Department of Housing and Urban Development. The rate fell 23.5% from the October 2006 estimate of 952,000 new-home sales.
The median sales price of new homes sold in October was $217,800, and the average sales price was $305,800. The U.S. has an 8.5-month supply of new homes at the current sales rate.