February new home sales prices increased to 8.3 percent which is the largest jump in years.
On the other hand.
U.S. new home sales fell 1.6% in February to a 313,000 units pace. This was lower than what was expected and lower than the 318,000 number which came in for January.
Just as things on the macro side begin to brighten, oil, the price of dark oil begins to rear its ugly head.
It is very possible the U.S. could slip into another recession if oil prices reach around $150 per barrel.
Every ten dollar rise in oil will take take about 20 basis points off U.S. GDP growth in each of the first two
years of the price hike. Its important to remember that Gasoline, motor fuels, and fuel oil account for 5.5% of household spending, and rising.
A $10 rise in crude oil prices will hike gasoline prices by about 25 cents (8%) and cut consumers’ purchasing
power by about 0.4% which is a large number in this fragile recovery.
No comments:
Post a Comment