By Mark Memmott

The latest numbers on so-called pending home sales look like more evidence that the worst may be over for the economy.

According to the National Association of Relators, "contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001."

Translation: A lot of folks have signed contracts to buy homes. The pace is 12% above this time last year. If those sales generate additional spending on furniture, paint, appliances and other home-related goods, then the ripple effects could spread.

Also this morning, the Census Bureau reported that construction spending declined 0.2% in July from June -- but that spending on construction of homes and apartment was up 2.3%.

Finally, the private Institute for Supply Management said its index of the manufacturing sector's health rose to 52.9% in August from 48.9% in July. "The year-and-a-half decline in manufacturing output has come to an end, as 11 of 18 manufacturing industries are reporting growth when comparing August to July," said Norbert Ore, CPSM, chairman of the institute's Mannufacturing Business Survey Committee, in a statement.

categories: Economy

10:50 - September 1, 2009

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