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The housing activity declined further in the second quarter of 2007 in response to the continued softness in home sales and still elevated inventories of unsold new homes (Federal Reserve). Businesses added jobs at a rate of 2-1/4%, with unemployment remaining at 4-1/2 percent. Consumer confidence rebounded in August 2007 as gasoline prices receded, resulting in an increase in consumer spending. Retail sales have seen a slight reduction mainly due to the decline in home sales. The inflation rate has picked up mainly due to energy and food prices, but continues to be relatively low. Lastly, the personal income economic indicator reports that the U...
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