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Key Business Barometer
Plummets To 18-Year Low
6The Chicago purchasing managers index, which measures economic activity aroundChicago, fell to 40.2 in January from December's 45.2. It was the fourth straight month that business activity shrank. All the production indexes fell in January, suggesting factory activity will remain weak in coming months. But the prices-paid index rose, hinting inflation is on the rise. Even so, the report is fuel fo
r more Federal Reserve rate cuts in coming months.
Dec. Homes Snapped Up
As Low Rates Led Charge
7New-home sales soared 13.4% to an annual rate of 975,000 units, the biggest monthly gain in over seven years. Analysts expected 885,000 units. Year-over-year sales rose 6.4% after a 3.9% drop in November. Lower mortgage rates were cited. This raises doubts a recession is in the cards, said Joel Naroff, chief economist of Naroff Economic Advisors. Thirty-year fixed-rate mortgages averaged 7.38% in December, down from 7.91% the year before.