New Data Show Economic Slowdown Continues Into Third Quarter

08.17.10 | FL News Team

(Washington, DC)  -- New manufacturing and housing data confirm an economic slowdown in the second half of this year.  Numbers show home builders' optimism hit an 18-month year low in August.  Regional manufacturing also did not grew as fast as expected.  Despite a continued slowdown, most economists don't believe the economy is falling back into recession.

The National Association of Home Builders-Wells Fargo Housing Market Index dipped one-point to 13.  The slip is defying market expectations of a one-point rise to 15.  The index has not been above 15 since April 2006.

The NAHB survey shows the slowdown could be a reflection of government stimulus programs ending, including a popular home buyer tax credit.  Figures show single-family home sales fell in August to their lowest level since June 2009.  Sales expectations for the next six months are at the lowest level since March 2009.