By ADRIAN LOWCOCK 31/07/2009
A round up of the latest major economic news and developments
US economy shrinks
Today the US Commerce Department released quarterly figures on the performance of the US economy. From April to June the economy contracted 1%, compared to a 6.4% contraction in the first quarter this year. The US economy has now shrunk for four months in a row, the longest period of contraction since records began in 1947. Consumer spending, which accounts for over two thirds of economic activity, fell 1.2% in the second quarter, after a rise of 0.6% in the previous quarter.
House prices rise for third month
In July, house prices rose for the third month in row according to the Nationwide Building Society adding weight to the belief that property prices have started to stabilise. The data showed a 1.3% rise in prices, the forth increase over the last five months, taking the annual rate of decline to 6.2%. Over three months prices have risen 2.6%, the highest reading since February 2007.
Mortgage approvals highest since April 2008
The Bank of England said home loan approvals were 47,584 in June, up from 44,169 in May and provides support to other data suggesting the decline in the housing market is levelling off. The actual amount of money leant was significantly below forecasts of £600 million at £343 million and total consumer lending remains at its weakest since records began in April 1993.