U.S. Economy: Confidence Index Rises Most Since 2005 By Shobhana Chandra and Courtney Schlisserman
April 28 (Bloomberg) -- Consumer confidence in the U.S. jumped by the most since 2005 this month as stocks rallied, mortgage rates dropped and Americans anticipated more jobs would become available. The Conference Board's sentiment index rose more than forecast to a five-month high of 39.2. A separate report showed the decline in home prices in 20 U.S. cities slowed in February for the first time since 2007, with the S&P/Case-Shiller index posting an 18.6 percent drop from the same month a year before. "There certainly is starting to be a shift here, where the data is either less bad or even starting to improve," Michael Darda, chief economist at MKM Partners LP in New York, said in an interview with Bloomberg Television. While "we certainly haven't turned the corner yet" the economy "could bottom out between June and October of this year and then start" growing. http://www.bloomberg.com/apps/news?pid=20601068&sid=ajMQSmgKP7AY&refer=home Home Prices in 20 U.S. Cities Declined at Slower Pace By Courtney Schlisserman April 28 (Bloomberg) -- The decline in home prices in 20 major U.S. cities slowed in February for the first time since 2007, amplifying signals that the market may be stabilizing. The S&P/Case-Shiller index's 18.6 percent decrease compares with a record 19 percent decline the month before. The gauge has fallen every month since January 2007, and year-over-year records began in 2001. Declining prices, Federal Reserve efforts to bring mortgage rates down, and government tax credits for first-time buyers may continue to support sales after an almost four-year slide. Still, mounting unemployment means purchases are unlikely to rebound quickly. "We're probably getting close to an inflection point," said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who correctly forecast the drop in the index. Still, he said, "if we are indeed going to see a recovery in the second half," the double-digit price drops will need to abate in the next few months. http://www.bloomberg.com/apps/news?pid=20601068&sid=aIGs3yk6Pwmw&refer=home
