Reply #4: Home builder mood sours

[ozymandius]

WASHINGTON/NEW YORK (Reuters) – U.S. home builders' optimism hit a near 1-1/2 year low in August and a regional manufacturing gauge grew more slowly than expected, implying the economic slowdown continued into the third quarter.

The reports on Monday came on the heels of data last week showing tepid retail sales growth and benign inflation pressures in July. Still, most economists do not believe the U.S. economy is slipping back into recession.

The National Association of Home Builders/Wells Fargo Housing Market Index slipped one point to 13, defying market expectations for a rise to 15. It was the third consecutive month of decline in the index.

A reading above 50 indicates that more builders view sales conditions as good than poor, but the index has not been above that level since April 2006.

http://news.yahoo.com/s/nm/20100816/bs_nm/us_usa_economy

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Reminder: the economists who believe that the economy is slipping back into recession are probably the same who forecast a rise in builder optimism.