Housing Keeps Powering Economy

August 17, 2005, NY Times — Record oil prices are beginning to slow the economy, according to several reports released yesterday, but expansion continued in July because of the housing market and demand from businesses and consumers. The reports said inflation grew faster than expected, industrial production slowed in July and home construction took a slight breather. But the consumer generally remained resilient. Compared with July 2004, consumer prices were up 3.2 percent and the core rate was up 2.1 percent. In the New York area, prices rose 0.9 percent from June and 3.4 percent from July 2004. Other economic reports released yesterday showed that new-home construction dipped 0.1 percent in July and that industrial production grew 0.1 percent in the month. Economists said both numbers were poised to increase because construction permits were still rising and manufacturers had depleted inventories.
Healthy Housing Market Lifted Economy [NY Times]