Housing Starts down.

Housing Starts  (February 2015)

 

– Starts seasonally adjusted, annualized 897,000. Previous was 1,081.
– Permits seasonally adjusted, annualized  1,092,000. Previous was 1,060,000.

Since the Northeast region was down 56.6% some of this is weather related. Still, Housing Starts are simply showing little sign of recovering to the natural level of 1.500,000.

The CBO forecast for Housing Starts for this year is 1,300,000 with 2016 at 1,500,000.  Good luck with that.

 

Redbook  (week ended 3/14/2015)

 

– Chain Store Sales year/year  2.7%. Previous was 2.6%.

FOMC

The FOMC meeting begins today.  Everyone is interested in the language the Fed will use indicating when it will raise rates. The continuing rise in the value of the US$ v. the Euro makes it very difficult for the Fed to raise rates.  GDP growth here is anemic. GDP growth in the EU is nearly non-existing and whatever GDP growth really is in China is likely a lot less than what is stated.  We are looking at a flat world economy.  Raising rates here would hurt the EU because it would send money from the EU to the US.