US unemployment fell slightly to 4.7% in August, suggesting the US economy is still generating jobs, but a sharp slowdown in the residential property market persists.
Construction spending dropped an unexpected 1.2% in July, pulled down by a 2% fall in private residential activity.
And the National Association of Realtors’ pending home sales index plunged 7% in July. Each was the biggest monthly decline of its kind for five years.
References: Financial Times 02/09/06 page 7
