The Lehmann
Letter (SM)
This
morning's bulletins provide additional signs of bifurcation.
New-home
sales remain in the doldrums:
While consumer
confidence has moved up and out of recession's trough:
Update the
charts with these new numbers.
There were
328,000 new homes sold in March, a dip from February's revised 353,000. The
chart reveals that those are not bad numbers. There is no sign of a double dip.
At the same time you can see that a true expansion has not yet begun.
Consumer confidence
was 69.2 in April, about the same as March's 69.5. That seems, like new-home
sales, to indicate a plateau. But the chart shows us that there has been some
recovery from recession lows.
New Home
Sales
(Click on
chart to enlarge)
(Recessions
shaded)
Consumer
Confidence
(Click on
chart to enlarge)
(Recessions
shaded)
Here is a
fair way to summarize: Neither of these indicators provides evidence of robust
expansion, but they do tell different stories. Households are more confident
than they were several years ago. Unfortunately this confidence has not helped
housing. New-home sales are barely higher.
This is
evidence of the bifurcated economy. Everything except housing is trying to head
north. Unfortunately, without housing, the economy can't move quickly ahead.
(To be fully
informed visit http://www.beyourowneconomist.com/)
© 2012 Michael
B. Lehmann
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