The S&P/Case-Shiller Home Price Index for October declined 18.0% year-over-year, versus the survey of economists forecast of a decline of 17.9%, and comes on top of declining 17.4% in September. The S&P/Case-Shiller Index tracks the price path of a typical single-family home in 20 metropolitan areas and is considered the most accurate reflection of pricing trends versus other measures that track current sales, which can be influenced by geographic trends and types of homes being sold in the period. The index started in 2001 and therefore does not have a long history when compared to other data sets.
The Consumer Confidence Index fell from 44.7 in November to 38.0 in December, well below the forecast of 45.5 and the lowest since the survey began in 1967. Falling sentiment appears to have severely impacted the 2008 Christmas shopping season, despite numerous sales offered by retailers.
The Chicago Purchasing Managers’ Index edged up from 33.8 in November to 34.1 in December, topping the consensus forecast of 33.0. Prices paid fell from 50.7 to 30.5, indicating that excess supply is putting downward pressure on prices at the early stages of production.
