- Lawrence Yun, NAR chief economist
Business activity in the US manufacturing surged unexpectedly in January, rebounding from a more than three-year low. The flash manufacturing PMI reading from Markit climbed to 52.7, up from 51.2 in December, against economists' expectations for a reading to remain flat. As export orders showed signs of reviving, producers appeared to shrug off concerns about China. Given the recent volatility in financial markets, the sector's resilience is an encouraging signal for growth and employment in the wider economy.
A separate report showed US existing home sales rebounded in December from a 19-month low, while prices increased, adding to signs the US housing market continued to recover despite signs of a moderation in economic activity in recent months. According to the National Association of Realtors, home resales soared a record 14.7% to an annual rate of 5.46 million units. For all of 2015, sales reached 5.26 million, the highest annual level since 2006. The national median home prices surged to $224,100, up 7.6% from a year earlier. At the same time, inventories of existing homes for sales plunged 12% to 1.79 million in December. The recovery in the housing sector helped boost the economy. New-home construction last year hit the highest level since 2007, while residential investment has added to GDP for six straight quarters.
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