Homebuilding in US at 17-year low

The number of homes and apartments being built in the US sank in July to the lowest level in more than 17 years, government figures show. Builders started work on 965,000 properties, on an annualised basis, from 1.08 million in June, the Commerce Department said. However, this was not as bleak as some had been expecting. Separately, inflationary pressures saw US wholesale prices shoot ahead by 1.2% in July - its fastest pace in 27 years. Core inflation, which strips out energy and food costs, climbed by 0.7% from June, the Labor Department said, well above the the 0.2% rise which had been forecast. The rapid wholesale inflation seen in July was largely linked to energy costs during the month, which saw crude oil hit a record price of $147.27 per barrel, sending petrol prices soaring. But there are hopes that prices rises will abate, now that the price of oil has fallen by more than $30 per barrel. "Though commodity prices have come down significantly from record highs in mid-July and the dollar has strengthened, consumers can still expect to see increased inflation for some time to come as the producer price pressures feed through to consumer prices," said Arek Ohanissian, an economist at the CEBR. Grim Economists have been studying forward-looking information for signs that the US housing slump was past its worst. However, the Commerce Department data made for grim reading, with the number of construction permits issued - seen as a reliable sign of future activity - down 17.7% on an annual basis. And the number of new homes being constructed last month was down by 39.2% compared with July 2007. "The continued weakening of the housing market is an additional pressure and households will feel further squeezed in terms of real disposable income," said Mr Ohanissian. He said that "given this state of affairs and the general weakness of the economy" the Federal Reserve was likely to keep interest rates low at 2% - despite rising inflation.

US investors put USD 615 M in European real estate fund

Dublin-based Quinlan Private, international private equity and real estate group, has raised USD 615 million of equity capital from US investors to invest in properties across Europe."There's a strong degree of interest among US investors in European properties, and the fund has been able to capitalize on that" a spokesman for Quinlan Private told Commercial Property News (CPN), adding that the fund is now oversubscribed.The Quinlan Private European Strategic Real Estate Fund is to invest in real estate assets in Western Europe, as well as parts of Central and Eastern Europe.The fund has so far invested in retail developments in Bulgaria and Slovakia and office properties in the Netherlands, the UK and Germany.

USA Invsted $600 Mln in Bulgaria for 18 Years - US Ambassador Beyrle

In the last 18 years the American Agency for international development had invested in Bulgaria round $600 million. This was informed by the US Ambassador to Bulgaria John Beyrle, by the time of the international press conference on theme ‘Democracy that give result'. The Ambassador calculated that the US Government invested per $10 every year in each Bulgarian citizen. The local experience in the development of the democracy may be favorable for the Western Balkans, the diplomat added.