Short-term outlook brighter: A private research group is reporting that U.S. consumers’ confidence rose slightly in July as concerns about jobs and income somewhat eased. The Conference Board’s Consumer Confidence Index edged up to 59.5 in July from a revised 57.6 in June, which marked a seven-month low in the measure. Economists had expected the July figure to fall to 56. Consumers’ short-term outlook improved, according to the index, but their thoughts on current business and employment conditions dimmed as labor market concerns persist. A reading of 90 indicates a healthy economy on the index, which measures how Americans feel about business conditions, the job market and the next six months.
Continuing weakness: Fewer people bought new homes in June, evidence that the housing market remains weak. The Commerce Department says sales of new homes fell 1% in June to an annual rate of 312,000. That’s less than half the 700,000 homes sold per year that economists say is typical in healthy markets. Sales fell to record lows in the Northeast and West. The median price of a new home rose to $235,200 in June, up 5.8% from May. Housing remains the weakest part of the U.S. economy. Last year was the worst for new-home sales on records dating back a half-century. Through the first six months of this year, sales are lagging behind last year’s totals.
