Data continue to point to a tepid economic recovery for the US rather than a dip into a second recession. The latest clue: Incomes were up for Americans in August, but only 0.5 percent.
Home prices rose in 17 of 20 US metropolitan areas during the month of June, according to the most recent S&P/Case-Schiller monthly price index.
The rise in consumer spending counters investor fears of a dip back into recession as the American consumer loosens up a bit.
Home sales fell 27 percent between June and July. The news suggests that working through a glut of unsold homes and foreclosed properties may take longer than some economists predicted.
The China economy has surpassed Japan’s to become the No. 2 economy in the world. But America doesn’t need to worry about China leaving the US in the dust anytime soon, economists say.
The Federal Reserve was set to let its $2 trillion pool of securities shrink. But it decided Tuesday to keep that amount steady – by buying Treasury bonds – as a way to spur economic recovery.
Unemployment benefits claims tumbled to a near two-year low last week, but a modest gain in industrial output and a third monthly drop in wholesale prices in June confirmed a slackening in the economy's recovery.
US home prices were up 0.8% but government tax credits bolstered the housing market and incentives have expired.