Economics Update

The numbers are out for March pending home sales, and they are very grim, with the pending home sales index falling to it's lowest level since its founding in 2001, a 1% one month and 20% year over year drop. Of course the NAR is seeing a turnaround in the next few months, like they always do.

We are also seeing increasing signs of inflation, with Federal Reserve Bank of Kansas City President Thomas Hoenig suggesting that inflation pressures may lead to rate hikes soon, and Toyota to raising prices on their cars, largely as a result of the falling dollar.

On the plus side, however, productivity increased by 2.2% in the first quarter, more than the 1.5% predicted, which should moderate inflation some.

On a more general, "we in a recession" note, retail imports fell 4.8% in March, yet another indicator of a slowdown, that the retailers are cutting back.

Oil hit another record today too.