"It adds to expectations that growth is likely to be lackluster in the opening quarter of the year"
- Joe Manimbo, a senior market analyst at Western Union Business Solutions
Confidence among home builders in the world's largest economy turned lower unexpectedly this month, as builders faced higher material costs, the report by the National Association of Home Builders showed Tuesday. Their housing market index stood at 46 in February, down one point from the previous month's reading, which was the strongest since April 2006. Analysts, however, expected the index to rise by one point to 48. The report also showed that growing uncertainties over the labour market and rising costs for building materials weighed on the solid gains seen over the last year. In the meantime, latest data, which showed a strengthening job market, increased property values amid the fact that stocks are trading at five-year highs, which all are providing a boost to Americans' balance sheets.
"We saw a meaningful improvement in overall financial market conditions and home prices, and those are the kind of drivers now for consumer confidence," said Millan Mulraine, director of U.S. rates research at TD Securities USA LLC in New York.
"It adds to expectations that growth is likely to be lackluster in the opening quarter of the year, due mainly to the expiration of that payroll tax cut," said Joe Manimbo, a senior market analyst at Western Union Business Solutions.
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