“Weaker-than-expected economic growth indicated by data released since January, recent developments in the global economy, and a reexamination of projected productivity growth contributed to that downward revisions,” the CBO said.
On the deficit, the CBO’s latest report sees a slight improvement over the longer term, mostly because the government is expected to pay lower interest rates on its almost $20 trillion in debt. The predicted deficit tally over the coming decade — almost $9 trillion — represents an improvement of about $700 billion.
All told, the CBO predicts the deficit rising from $590 billion in the budget year ending Sept. 30 to $1.2 trillion in 2026.
— Associated Press
HOUSING
Sales of new homes unexpectedly surge
Purchases of new U.S. homes unexpectedly jumped in July to the highest level in almost nine years, led by soaring demand in the South and adding to signs of housing-market strength.
Sales increased 12.4 percent to a 654,000 annualized pace, the fastest since October 2007, Commerce Department data showed Tuesday.
The Commerce Department revised the June reading lower to a 582,000 pace from a previously estimated 592,000.
The increase in demand in July included an 18.1 percent jump in the South to a 398,000 rate. In the Midwest, demand was the strongest since November 2007, while the Northeast posted a gain and the West was unchanged.
— Bloomberg News
Also in Business
Pinterest is buying
J.M. Smucker Co.,
The U.S. Agriculture Department
— From news services
Coming Today
10 a.m.:
Earnings:
— From news services
