Significant economic news was reported today:

New-home sales soared in April, an unexpected surge marking the biggest climb in 14 years…rising by 16% to a seasonally adjusted annual rate of 981,000, the Commerce Department said Thursday…Year-to-year, new-home sales were 11% lower than the level in April 2006.The average price of a home last month decreased to $299,100, down from $324,700 in March and $310,300 in April 2006. The median price was $229,100, lower than $257,600 in March and $257,000 in April 2006.

While this is good news, it is only one month and one shouldn't place too much weight on it. Prices were lower due to the concentration of sales in cheaper areas of the south. Meanwhile, on other fronts

A key barometer of business equipment spending — orders for nondefense capital goods excluding aircraft — climbed by 1.2%, after increasing 4.4% in March. Year-to-year, orders were down 1.3%…the 0.6% increase in overall durable-goods orders came short of expectations on Wall Streeet../Signs of manufacturing sector health have been turning up. The monthly Institute for Supply Management's manufacturing index moved in April to 54.7 from 50.9 in March. And U.S. industrial production rose by 0.7% last month, more than doubling the expected pace of 0.3%.

Some are arguing that the very sluggish Q1 GDP numbers will be the weakest we will see. This last set of data still points to a sluggish economy though.On the jobs front

The four-week average [for jobless claims]– which economists use to gauge underlying labor market trends — slid by 3,500 to 302,750, the lowest reading since Feb. 25, 2006. Levels around 300,000 are usually consistent with strong monthly job growth.

The labor market remains strong. For more information, contact us!