Economic Update: Encouraging Signs, Amidst The Muck

Standard & Poor&Senior Economist Beth Ann Bovino notes that there was some encouraging economic data out this week mixed with the softer news. The S&P/Case-Shiller home price index rose in April for the first time in eight months. Although it is hopeful, it&too early to say whether this is a turning point or because the Spring-Summer buying season has begun. Durable orders also started to recover from the steep Japanese supply shock-induced drop in April. However, people aren&feeling very encouraged at the moment. They also aren&feeling very open with their pocketbooks, as consumer spending remained flat in May.