- Consumer Confidence for September fell to 86.6 versus estimates of 95.0 and a reading of 105.5 in August.
BOTTOM LINE: US new home sales last month fell by the most since November, Bloomberg reported. The average price of a new home rose last month to $220,300 from $215,000 the prior month. Today’s report puts new home sales for the year on pace to beat last year’s all-time record. The supply of new homes for sale at the current pace rose to 4.7 months from 4.1 months in July. New Home Sales in August declined 2.2% in the South, 18% in the West, 11% in the Midwest and 22% in the Northeast. New home sales will fall again next month as the full brunt of Katrina and Rita is felt.
Consumer confidence in the US dropped by the most in 15 years in September after Hurricane Katrina devastated the Gulf Coast and pushed gas prices to a record, Bloomberg said. The percentage of consumers that saw jobs as hard to get rose to 25.4% from 23.1%. The expectations component of the index fell to 71.7 from 93.3. Consumer Confidence will likely bounce back sharply in the fourth quarter.