Economic Reports 09/05/07

Summary: Bank Of Canada holding at 4.5%, adjustment in US housing more pronounced and protracted.

The housing debacle continues... Pending home sales plummets to lowest since index started in 2001.

Bank of Canada Statement

Near-term economic prospects for the United States are weaker than expected.

It now seems likely that the adjustment in the U.S. residential housing sector will be more pronounced and protracted, exacerbated by recent developments in financial markets
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Pending Home Sales Jul -12.2% vs prior +5.0%
Full Report

Inside the number: Non seasonally adjusted drop 17.3%. YOY -16.1%. NE - 12.2%; MW -13.1%; South -6.6%; West -20.8%.

Robert Shiller, chief economist at MacroMarkets: "50% declines in home prices in some regions are entirely possible".

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