Market Review, November 2011

The third quarter real gross domestic product was revised to a 2.0% annualized, down from the initial estimate of 2.5% and below the consensus of 2.4%, according to the second estimate released by the Bureau of Economic Analysis. The downward revision was primarily driven by a decline in inventories.

October pending homes sales increased 10.4% from September as housing prices continue to decline. The S&P/Case-Shiller Home Price Index declined in September on both a monthly and an annual basis. The 20 city home price index declined 0.6% from August and fell 3.6% from a year ago. Building permits rose 9.3% while housing starts fell less than the forecast -0.3% decline to 628,000 last month.