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To: 10K a day who wrote (78878)	6/17/2001 7:04:03 PM
From: Ibexx	Respond to of 99985

06/17 09:31 Home Construction Shows Strength in May: U.S. Economy Preview By Vincent Del Giudice and Alex Tanzi Washington, June 17 (Bloomberg) -- The likely pace of U.S. home construction in May suggests housing has resisted a slowing economy, analysts said. Builders probably started work on 1.597 million homes at an annual rate last month, according to a Bloomberg News survey. While that's down 0.7 percent from April, the expected pace still shows starts in excess of the 1.592 million recorded in 2000. The rate on a 30-year mortgage has averaged less than 7.1 percent this year, a point lower than the average in 2000, helping buoy sales. Consumer optimism about affordability has outweighed the impact of an eight-month slump in industrial production on employment and confidence, analysts said. ``It will take something bigger than a manufacturing recession to rattle home buyers,'' said Christopher Low, chief economist at First Tennessee Capital Markets in New York. The Commerce Department will issue the report Tuesday. The Labor Department's report Thursday on claims for unemployment insurance will probably reaffirm that businesses keep shedding workers. Analysts expect 425,000 new claims in the week ended June 16. While that's down 3,000 from a week earlier, claims will have exceeded 400,000 for five straight weeks. Industrial production has been in decline since October, and manufacturers have cut more than 360,000 jobs since the beginning of the year. By contrast, manufacturers added 130,000 jobs in the first six months of 2000. Other Indicators The Federal Reserve Bank of Philadelphia's factory survey for June can be expected to show weakness in manufacturing in eastern Pennsylvania, southern New Jersey and all of Delaware, analysts said. The index probably fell to a negative 10 from a negative 8.8 in May, analysts said. That report is scheduled for release on Thursday as well. In other reports: -- The index of leading economic indicators, a gauge of potential economic growth over the next six to nine months, probably increased 0.3 percent in May after rising 0.1 percent during April, analysts said. That would be the second consecutive rise and follow declines in February and March. The Conference Board, a New York business research group, will issue the report Wednesday. -- The U.S. government will probably report a budget deficit of $30 billion for May, wider than the May 2000 shortfall of $3.6 billion, analysts said. Still, the Congressional Budget Office is forecasting a record surplus of $275 billion for the fiscal year, which ends Sept. 30. The Treasury will release the report Wednesday. -- The trade deficit probably narrowed to $31.0 billion in April from $31.2 billion in March as growth in imports and exports slowed. The Commerce Department will release that report Thursday. Bloomberg Survey T Date Time Period Indicator Survey Prior 06/19 8:30 April Housing Starts 1.597M 1.609M 06/20 10:00 May Leading Indicators 0.3% 0.1% 06/20 14:00 May Budget Statement $-30B $-3.6B 06/21 8:30 6/16 Jobless Claims 425K 428K 06/21 8:30 April Trade Balance $-31B $-31.2B 06/21 10:00 June Philadelphia Fed -10.0 -8.8 T Federal Reserve, Treasury Monday, June 18 Hot Springs, Virginia: Federal Reserve Bank of Richmond President Alfred Broaddus addresses the Virginia Bankers Association on the U.S. economy and banking at The Homestead. Wednesday, June 20 Washington: Federal Reserve Chairman Alan Greenspan addresses the Labor Department's 21st Century Workforce Summit. Washington: Federal Reserve Chairman Alan Greenspan testifies on the state of the U.S. financial system at a hearing of the Senate Banking Committee. _____ Ibexx