The US economy continues to show bouts of positive and negative data. While few days back , there were reports of increase in industrial goods order, now there are reports of a 0.6% decline in the new home sales in the month of May 2009, when compared to previous month figure of 344000 units.
The figure is a sharp 32% decline over a year ago figure, and is a clear indication that the housing sector could take a very long time for recovery.
And make no mistake, the US economy as a whole cannot recover without a clear cut recovery in the housing sector. And housing sector recovery is linked to reduction in the unemployment rates from 9.4% levels and also on sustenance of the low mortgage rates.