It is encouraging that we have begun to see some evidence of stronger demand for homes and consumer goods and services. In the housing sector, sales of new and existing homes have moved up appreciably over the course of this year, and prices have firmed a bit. Meanwhile, the inventory of unsold new homes has been shrinking.
Reflecting these developments, homebuilders have somewhat increased the rate of new construction – a marked change from the steep declines that have characterized the past few years. Consumer spending also has been rising since midyear.