US home resales tumble, GDP revised lower in Q3

Sales of previously-owned US homes tumbled to the lowest pace in 19 months in November, a much larger fall than economists forecast.

Existing home sales stumbled 10.5 per cent to an annualised rate of 4.76m units in November, from a downwardly revised 5.32m the month prior, according to the US National Association of Realtors. Economists had forecast a reading of 5.35m units for the month.

Other data showed that the US economy headed into the final quarter of the year with modestly weaker growth than estimated.

Gross domestic product expanded at a 2 per cent clip in the third quarter, according to a third and final revision from the Commerce Department released on Tuesday. That’s weaker than a previous estimate of 2 per cent, and was forecast to come in at 2.1 percent. The new revised figure marks a sharp slowing from the 3.9 per cent pace recorded in the second quarter.

While the revision underlines the bumpy nature of GDP growth in the US this year, Federal Reserve policymakers decided last week to raise rates for the first time since 2006 as they judged the US economy is robust enough to withstand a first rate rise since 2006.

Steady increases in consumer spending have been central to Fed officials’ confidence in the economy, and household spending stood out in the final revision. It was revised higher to a 3 per cent pace from 2.9 per cent.

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Source:: US home resales tumble, GDP revised lower in Q3

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