Economy Highlights

US - Sales of new US homes fell more than forecast in January

Purchases of new houses in the US fell more than forecast in January, reflecting declines in the West and South that indicate a California tax credit and bad weather may have played a role. Sales declined 13% to a 284,000 annual pace, figures from the Commerce Department showed. The median estimate of economists surveyed by Bloomberg News projected a decrease to a 305,000 rate. Demand dropped 37% in the West and 13% in the South. (Bloomberg)


US - Jobless claims fall

Fewer Americans than forecast filed first-time claims to collect jobless benefits last week, indicating companies are reducing the pace of firings as they grow more confident in the economic outlook. Applications for unemployment insurance decreased 22,000 to 391,000 in the week ended 19 Feb, the Labor Department said. Claims have fallen in three of the past four weeks, pushing down the monthly average to the lowest level since July 2008. (Bloomberg)


US - Consumer comfort rises to highest level since '08

Consumer confidence climbed to the highest level since April 2008 as Americans grew less pessimistic about their finances. The Bloomberg Consumer Comfort Index, formerly the ABC News US Weekly Consumer Comfort Index, was minus 39.2 in the period to 20 Feb, compared with minus 43.4 the prior week, a report showed. (Bloomberg)


EU - Europe economic confidence rises more than economists forecast

European confidence in the economic outlook improved more than economists forecast to the highest in 3 1/2 years in February, led by surging optimism in Germany. An index of executive and consumer sentiment in the euro region advanced to 107.8 from 106.8 in January 2011, the European Commission said. That’s the highest since August 2007. Economists had forecast a February reading of 106.8, the median of 28 estimates in a Bloomberg survey showed. (Bloomberg)


India - Mukherjee cutting debt sales drives flatter curve

For the first time in seven years India’s government may be preparing to reduce debt sales, spurring a rally in longer-dated bonds. Yields on 10-year bonds fell to within 27 basis points of two-year debt on 23 Feb, the least since December 2008, data compiled by Bloomberg show. Eight of 12 economists in a Bloomberg News survey predict policy makers will cut borrowings in the year starting April. (Bloomberg)