Tuesday, January 26, 2010

Quick Notes for the Day - January 26

IMF Projects Stronger Recovery - The International Monetary Fund (IMF) released their latest economic projection Tuesday that stated that the global recovery has been stronger than expected but financial stability remains fragile. In the world's largest economies, the recovery is expected to remain sluggish and there is little evidence of demand not driven by government stimulus. In numerous emerging economies though, activity will be relatively vigorous. Due to the fragile nature of the recovery, "fiscal policies need to remain supportive of economic activity in the near term." Additionally, there continues to be the need to repair the financial sector with an added risk that public debt issuance in coming years could crowd out private sector credit growth.

Consumer Confidence Rises to a High - According to a survey released Tuesday by the Conference Board, the consumer confidence index rose to 55.9 in January from an upwardly revised 53.6 in December. The 55.9 reading is a 16-month high. The improvement in January was due mainly to better feelings about the present situation with consumer expectations and labor market assessment improving slightly.

Home Prices Fall 0.2% in November - According to the Case-Shiller home price index released Tuesday by Standard & Poors, home prices in 20 major US cities fell 0.2% in November versus October non-seasonally adjusted. Overall, prices are down 5.3% in the past year according to S&P. Five of 20 cities saw higher prices in November versus October. On a seasonally adjusted basis, prices rose 0.2% in November.

Budget Deficit to hit $1.3 Trillion in 2010 - CBO - The Congressional Budget Office (CBO) estimated that the US budget deficit will hit $1.3 trillion in 2010. President Obama in response has called for a 3-year freeze on certain domestic spending that could potentially save $250 billion over 10 years - read more at Obama to Seek Three-Year Freeze on Domestic Spending - Reuters The Congressional Budget Office's estimate assumes current laws and policies remain unchanged. Economic growth will also probably be "muted" for the next few years, the CBO said in its budget outlook for 2010.

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