Americans remain confident in economy

Americans remain confident in economy

NEW YORK

Americans’ confidence in the economy held steady in April from the previous month despite rising job cuts and falling home values.

The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index is at 69.2, down slightly from a revised 69.5 in March. Economists were expecting a reading of 70, according to a FactSet poll of analysts. The current level is below February’s 71.6, which is the highest level it’s been in a year.

Consumer confidence is widely watched because consumer spending accounts for 70 percent of economic activity. The current level is significantly below the 90 reading that indicates a healthy economy. But it’s well above its all-time low of 25.3 in February 2009.

Foreclosures squeeze home sales

WASHINGTON

Rising foreclosures are weighing on the U.S. housing market, reducing prices and keeping new-home sales weak.

Foreclosed homes usually are sold at steep discounts, thereby lowering average prices. And by expanding the supply of low-priced previously occupied homes, foreclosures tend to limit demand for new homes.

Some economists expect foreclosures to keep prices under pressure this year, even though they think sales of previously occupied homes will rise.

Banks are stepping up foreclosures in about half the states.

Associated Press