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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Investors Unfazed By Mixed Signs

From Wire Reports

Economy

It was another week of mixed economic signals, but financial markets gave the reports a positive spin, driving stocks to record highs.

During the week, government agencies and private organizations reported that new home sales rocketed to their highest level in more than 10 years, both personal income and consumer spending increased, a manufacturing report showed slower momentum, but an index designed to reflect future trends continued to climb.

Despite high mortgage rates, sales of new single-family homes jumped 4.7 percent in August to a seasonally adjusted annual rate of 832,000, highest since an 857,000 pace in April 1986, the Commerce Department said.

Analysts had expected a 4 percent decline. The department also revised the July increase to 8.3 percent, even stronger than its initial 7.9 percent estimate.

In a separate report, the department said personal income and consumer spending both rose 0.6 percent in August after edging up in July just 0.1 percent and 0.2 percent, respectively.

The National Association of Purchasing Management’s index fell to 51.7 percent in September from 52.6 percent in August. A reading above 50 percent is a sign of an expanding industrial economy.

The NAPM report said prices paid by manufacturers increased for the first time in four months, with its price index rising from 47.4 percent in August to 51.2 percent in September.

The Conference Board said its Index of Leading Economic Indicators rose 0.2 percent in August, its seventh straight gain, but on par with analysts’ expectations.