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The U.S. Census Bureau reported that sales of new single-family homes slipped 0.6% in July 2025, reaching a seasonally adjusted annual rate of 652,000, down from an upwardly revised 656,000 in June. Compared to a year earlier, sales were down 8.2%. Regionally, new home sales were unchanged in the Northeast (0.0%), declined in the Midwest (-6.6%) and South (-3.5%), but rose in the West (+11.7%). Year-to-date, an estimated 409,000 new homes have been sold, representing a 4.0% decrease from the same period in 2024. The median sales price for newly built homes fell to $403,800 in July from an upwardly revised $407,200 in June, while the average sales price decreased to $487,300 from $505,300. The seasonally adjusted inventory of new homes for sale stood at 499,000 units, representing a 9.2-month supply, unchanged from a downwardly revised June but up from 7.9 months a year earlier.
In August, The Conference Board Consumer Confidence Index® slipped by 1.3 points to 97.4, down from an upwardly revised 98.7 in July. The modest decline reflected rising concerns about jobs and income, which offset slightly more optimistic views of business conditions. The Present Situation Index, measuring current business and labor market conditions, fell 1.6 points to 131.2. The Expectations Index, which gauges consumers’ short-term outlook for income, business, and labor markets, decreased 1.2 points to 74.8 — remaining well below the recession-warning threshold of 80. Consumers cited persistent worries about inflation and high prices, with 12-month expectations increasing to 6.2% from 5.7% in July, while references to high prices, especially for food and groceries, also rose. Plans to buy cars rose modestly, home-buying intentions held steady, and purchasing plans for other big-ticket items were mixed, with some categories declining. Overall, expectations for future business and labor market conditions softened, reflecting heightened uncertainty about the economic outlook.
The Bureau of Economic Analysis’ second estimate for the second-quarter 2025 gross domestic product (GDP) reported that the economy expanded at a seasonally adjusted annual rate of 3.3%, up from the 3.0% growth reported in the advance estimate. This marks a sharp turnaround from the 0.5% contraction recorded in Q1 2025. The upward revision primarily reflects stronger consumer spending and higher investment, which were partially offset by softer government spending and higher imports. Consumer spending increased 1.6%, led by gains in both goods and services, and was revised upward from the previously reported 1.4%. Gross private domestic investment fell 13.8%, a smaller drop than the 15.6% decline initially estimated in the advance reading, largely due to a downward revision in private inventory investment. However, fixed investment posted a 3.3% increase, driven by gains in intellectual property products and equipment. Imports declined 29.8%, contributing positively to GDP, while exports decreased 1.3%. The price index for gross domestic purchases rose 1.8%, slightly lower than the advance estimate of 1.9%. The PCE price index increased 2.0%, with core PCE (excluding food and energy) holding steady at 2.5%.
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