Pending Home Sales Spike; ISM Services Index Grows Faster in March
April 7, 2010 - Pending home sales rose 8.2%, reaching 97.6 in the month of February. After being revised down to 90.2 in January, the number of buyers who decided to purchase formerly occupied homes has significantly increased.
"The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring," Lawrence Yun, NAR chief economist reported. "The healthy gain hints home prices are continuing to flatten."
The recent rise could signal that home buyers are responding to the tax credit.
ISM Services Index
Growing at its fastest pace in more than two years, activity in the U.S. service sector is expanding. A recovery in services has been a bit inconsistent with the high unemployment rate and a lagging revival in manufacturing.
Recent ISM Services results imply that economic recovery is beginning to broaden out. March's index rose to 55.4 from the 53 that was recorded in February. The gain was more than economists anticipated.
The service sector accounts for nearly 80% of all U.S. jobs and is highly dependent on consumer spending.