The confidence of U.S. homebuilders’ is at its highest level in almost a decade. According to the National Association of Home Builders/Wells Fargo, their confidence rose to 61, the highest since November 2005. This boost in confidence is attributed to a fairly strong job market and low mortgage rates, “boosting demand for residential real estate.” With the exception of the Northeast, most of the country saw a spike in confidence.
In contrast, the confidence of those in manufacturing dropped. For example such as New York which accounts for 3 percent of U.S. manufacturing, according the National Association of Manufacturers in Washington. The slowdown view the drop in New York’s stock-index as a potential indicator for other regional measures including one from the Philadelphia Federal reserve.
If the Empire State index 'correlated with any important measure of manufacturing activity, then a decline of this magnitude could be a troubling signal for national manufacturing conditions,’ John Ryding and Conrad DeQuadros of RDQ Economics in New York, wrote in a research note. 'However, it doesn’t correlate significantly with the ISM and we do not take this drop as a sign of trouble.’