Rising costs concern US homebuilders
Rising costs concern US homebuilders
U.S. homebuilders are concerned that limited land and rising costs for building materials and labor will slow sales in the short term.
Still, their outlook for sales over the next six months climbed to the highest level in more than six years — suggesting the obstacles could be temporary.
The National Association of Home Builders/Wells Fargo builder-sentiment index released Monday fell this month to 42 from 44 in March. It was the third decline since January. Measures of customer traffic and current sales conditions both declined from March’s reading.
Readings below 50 suggest negative sentiment about the housing market. The last time the index was at 50 or higher was in April 2006.
The recent declines come after the index had been trending hiring since October 2011, when it was 17.
China, Iceland sign free-trade pact
BEIJING
China and Iceland signed a free-trade agreement Monday, offering hope to the small North Atlantic country for its recession-battered economy and giving Beijing a leg up in its drive for expanded influence in the Arctic.
The China-Iceland free- trade pact will lower tariffs on a range of goods and is expected to boost seafood and other exports from the remote Nordic state to the world’s second-largest economy. It comes at the start of a five-day visit to China by Icelandic Prime Minister Johanna Sigurdardottir that highlights her country’s attempts to diversify an economy that was badly mauled by the bursting of a massive financial bubble in 2008.
Penney must calm investors, vendors
NEW YORK
As J.C. Penney Co. burns through its cash after a disastrous turnaround plan and taps almost half of its credit line, the flailing department-store chain doesn’t only have to calm its investors. It has to restore confidence among its several hundred suppliers whose constant flow of merchandise must continue if the retailer is to survive.
Penney announced Monday that it would draw $850 million from its $1.85 billion revolving credit line to pay for replenishing inventory, particularly for its overhauled home area. Some analysts say the move shows that the Plano, Texas-based company is burning through cash faster than expected. Penney also is looking for alternative sources of funding.
Price of oil drops nearly 3 percent
NEW YORK
The price of oil sank nearly 3 percent as a slowdown in China’s growth added to doubts about the strength of the world economy and global demand for crude. It fell further after the close of trading when a bombing at the finish line of the Boston Marathon killed two people.
The Chinese government said Monday that growth in the world’s second-largest economy slowed to 7.7 percent in the first quarter from 7.9 percent in the final quarter of last year. Growth was expected to accelerate slightly after several quarters of decline.
Associated Press