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THE ECONOMY.(TO THE POINT)

Investor's Business Daily

| December 01, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Factories should hum in '05, '06

The Manufacturers Alliance/MAPI said 24 of 27 industries reported improved activity from a year ago, the same number as in Q2. 18 are enjoying faster growth. The industrial recovery should last through '06, says MAPI. Double-digit gains are seen for mining, oil & gas field machinery, communications gear, computers and metalworking machinery.

GSEs can raise mortgage ceiling

The average U.S. home price in Oct. rose 8.5% vs. a year ago to $264,540. That paves the way for government-sponsored enterprises Fannie Mae and Freddie Mac to buy loans of up to $359,500, up from a current limit of $333,700. That means home buyers could borrow up to that amount at interest rates about a half-point lower than for bigger mortgages.

** The OECD sees the U.S. economy growing 3.3% in '05, down from a 3.7% estimate in May. It says high energy prices will act as a drag for the next few quarters. OECD expects 3.6% U.S. growth in '06.

** Japan's industrial output in Oct. unexpectedly fell 1.6% from Sept. amid a buildup in ...

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