The Consumer Confidence Index, the Consumer Sentiment Index and Remodeling Market Index all showed weaknesses in recently released reports. This would seem to suggests a weakening economy is developing which influences the housing market.
Weak economy = modest sales activity propeled by low mortgage rates.
For the record – and because I can’t tell my sentiment from my confidence from my urge to remodel…
Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board’s survey. [NASDAQ] The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. [NAHB]
Here are the results:
ABC/WashPost U.S. consumer confidence falls [Reuters] U.S. consumer confidence fell in the latest week, ABC News and the Washington Post said on Tuesday, with respondents concerned about making purchases due to persistently high gasoline prices and inflation.
Consumer sentiment fades in Feb.: University of Michigan gauge drops to 87.4 [MW] U.S. consumer sentiment eased in early February as gasoline prices rose, according to media reports Friday of proprietary research from the University of Michigan. The UMich sentiment index fell to 87.4 in February from 91.2 in January, reports said. Economists were expecting a flat reading of around 91.1, according to a survey conducted by MarketWatch.
Remodeling Slows In Fourth Quarter [NAHB] Remodeling activity slowed in the fourth quarter of 2005, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). However, current market conditions, as well as future expectations of the RMI, were still in the positive range for 2005 as a whole, though slightly below the 2004 average.