US Fundamentals Deteriorates
by Korman Tam
10/17/2008 3:25:00 PM
Economic reports from the US continued to point toward further deterioration in fundamentals, thereby reinforcing sentiment of an imminent recession. The data also revealed a sharp collapse in consumer confidence in light of the recent market turmoil and financial system crisis. The University of Michigan consumer sentiment survey posted its steepest drop on record, collapsing far more than expected to 57.5 in October, versus calls for a decline to 68.0 from 70.3 in September. The current situation index declined sharply to 58.9 from 75.0 a month earlier while the expectations index slumped to 56.7 versus 67.2 previously. Housing data reflected continued weakness in the housing market, with housing starts falling by 6.3% in September to 817k units, its lowest reading in 17-years, versus calls for a smaller drop to 880k from 895k in the previous month.
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