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Announcement
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THE PORTUGAL REAL ESTATE MARKET AND CONFIDENCE RECOVER
The Real Estate market and confidence recover, but unemployment continues to weigh on global economy
More positive indicators on the level of consumer confidence and housing market are today strengthening the hopes that the recession in the global economy is coming to an end. However, the rise in unemployment and the effect this has on consumption continue to ensure that the recovery is going slowly.
Following the trend of the recent weeks, economic indicators released in Europe during this morning show positive signs, but the analysts continue their optimism with some caution.
First, in Germany, the indicator of consumer confidence, calculated by the GfK AG, rose in August from 3.4 to 3.7 per cent, the highest in 15 months. And in the United Kingdom, where the crisis in the housing market helped the economy to sink, recorded in August the largest monthly of rise in housing prices the past two years. A sign that the decline in interest rates is already bringing back the buyers in this market.
Clever investors are picking up on the currently low prices on the housing market both in the UK and in the Algarve coast of Portugal, before they will rise to the normal level again. Some investors are talking about a quicker recovery than expected on the housing market.
However, following these positive indicators for economic activity, there are still signs that the recovery, will continue moderate. The survey of managers conducted by Bloomberg and used to measure changes in the retail trade in the euro area recorded on August the 15th registered a consecutive fall. The rise in unemployment, which in the Eurozone, has already reached the 9.4 per cent, is the reason given for the continuation of this trend.
In the United States early in the morning arose new statements from officials in the Federal Reserve, that there are signs of an increased confidence in the recovery. Jeffrey Lacker, a member of the Fed argued in an interview that the U.S. economy is stabilizing, pointing out that the housing market is already no longer is an obstacle to economic activity. "I think there is reason to hope," he said. However, we are waiting for the indicators of GDP in the second quarter, to reveal an up going correction.
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