Exhibitionist's Corner

[Francois+Goelo]

Claire, some pundits expect the Housing Sector...

to do reasonably well and don't believe a collapse is on the horizon... With the current low interests, they're probably correct...

Regards, FG

http://biz.yahoo.com/rb/010910/business_economy_nabe_dc_1.html

CONSUMPTION FORECASTS RAISED

But NABE sounded optimistic about consumption, which makes up two-thirds of the economy. Real consumption expenditures, are expected to grow 3.0 percent in 2001, compared to the 2.7 percent gain estimated earlier. NABE still expects 2002 consumption growth of 2.9 percent. Residential construction is now expected to grow 1.8 percent in 2001, compared to earlier expectations for a 1.0 percent contraction, the survey said. NABE also raised forecasts for residential construction growth in 2002 to 1.6 percent from earlier forecasts of 0.5 percent.

Housing starts are forecast around 1.62 million units in 2001, instead of 1.58 million units earlier predicted. The median forecast for 2002 is now 1.60 million units, up from the 1.55 million forecast made in May.

``The mix of diverging revisions reflects the degree to which the resilience of the household sector to deteriorating business conditions has caught economists by surprise,'' the report concluded.