Thursday, October 6, 2011

Bank of America - Amelia Island, Weekly Economic Report

National BOA Report Some pessimism crept back into the markets late last week as China's manufacturing PMI contracted for a third consecutive month. There is growing fear that a slowdown in China could affect the already fragile global economy. Also personal income was reported lower than expected. On the optimistic side, several economic reports were better than expected. New home sales for August were up 6.1% from a year earlier and the Case-Shiller Home Price Index rose in July from June in the 10 and 20 city survey, and was the fourth monthly gain in a row. There was also some positive news from overseas. European leaders are designing a Special Purpose Vehicle (SPV) that would issue bonds and purchase European debt to try to contain the malaise in that region. Plus, Germany voted in support of the expansion of the European Financial Stability Facility (EFSF), which will be used to help European Union member countries access capital. This is optimistic news, as it shows Germany is taking steps to help debt laden countries avoid default and potentially threaten the European Union. John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: Web:

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