A couple of troubling economic numbers came out today. The consumer confidence dropped 18.9 points in September to 86.6 and new home sales were off 9.9% in August. The drop in consumer confidence is probably somewhat related to the hurricanes, although not totally. The more troubling number is the drop in new home sales. It was roughly double what economists had expected.
Housing sales are one of the few things fueling our economy right now so a major slowdown would undoubtably spin the economy into at least a short recession. Sales are expected to continue to slow though the final quarter of 2005. We're going to have to see what interest rates are going to do, and I can't help but seeing them go up.
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