Capital Economics Examines Housing Recovery’s Impact on Growth While the economy has already seen a slight bump from homebuilding, researchers from “”Capital Economics””:https://www.capitaleconomics.com/ contend the burgeoning recovery may provide even greater lift to gross domestic product (GDP).[IMAGE]In the firm’s latest U.S. Economic Update, senior U.S. economist Paul Dales says the recovery in residential building contributed 0.3 percentage points to last year’s 2.2 percent rise in GDP. Last year was the first year since 2006 that new home construction didn’t directly subtract from GDP growth.At the same time, Dales notes the rise in home prices provided an indirect boost to economic activity by supporting consumption, “”both through the so-called wealth effect and the return of positive housing equity withdrawal.””In addition, recent developments have further highlighted the impact of the recovery on the larger economy, particularly in manufacturing output and employment. For example, Dales points to the annualized growth rate of output of construction supplies, which swung from a negative three-month rate of 8.8 percent in July to positive rate of 17.6 percent in February. Additionally, Dales noted a 5.9 percent increase in output of household appliances, furniture, and carpets–“”not quite as impressive, but … still a result of the housing recovery,”” he says.At the same time, payroll employment of construction workers rose at a three-month-on-three-month annualized rate of 6.7 percent in February, while employment at building materials stores rose 2.9 percent, and the number of real estate brokers rose 1.8 percent.””[H]ousing-related jobs have made a more significant contribution to the recent gains in employment. The number of housing-related jobs rose by an average of 45,000 per month in the three months to February, accounting for a quarter of the 191,000 average rise in total employment,”” Dales writes. “”A good chunk of the recent pick-up in job growth is therefore due to the strengthening housing recovery.””Dales concludes by noting that Capital Economics’ forecast for GDP growth in 2013–2 percent–assumes that housing will add about half a percentage point to growth. While lingering fiscal uncertainty and the euro-zone crisis may disrupt that growth, “”[t]he possibility that the housing recovery proves to be stronger than we expect is perhaps the most significant upside risk to [Capital Economics’] forecast.”” Share Agents & Brokers Attorneys & Title Companies Capital Economics GDP Home Prices Homebuilders Investors Jobs Lenders & Servicers Service Providers 2013-03-19 Tory Barringer March 19, 2013 433 Views in Data
Small Business Exchange To Get Soft Launch In 5 States This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription. Federal officials will give small businesses in five states an early chance to try out the delayed health insurance exchange for their employees to fix any glitches before the site goes live in other states. Meanwhile, Minn. Gov. Mark Dayton calls the MNsure rollout his “biggest disappointment,” and the Covered Oregon board votes on a new course.CQ Healthbeat: CMS Chief Prepares For Second Open Enrollment PeriodThe second year of open enrollment under the health care law brings its own set of “unique challenges,” the head of the Centers for Medicare and Medicaid Studies said Wednesday. CMS Administrator Marilyn Tavenner provided a few brief glimpses into the second open enrollment period for the law’s insurance exchanges, which will extend from Nov. 15 until Feb. 15, at a forum hosted by the National Institute for Health Care Management Foundation. Tavenner’s agency is tasked with both getting people re-enrolled and getting a new group signed up (Attias, 9/3). The Hill: Soft Launch Planned For Obamacare’s Business Exchange Federal health officials are planning to give small businesses in select states an early chance to try ObamaCare’s delayed health insurance exchange for their employees. The soft launch will begin in five states in late October as the Obama administration works to avoid another disaster in the healthcare law’s second enrollment period. The goal is to fix any problems encountered by users in Delaware, Illinois, Ohio, Missouri and New Jersey prior to Nov. 15, when the SHOP system (Small Business Health Options Program) will go live for all states that elected not to construct their own exchanges (Viebeck, 9/3). St. Louis Post-Dispatch: Missouri, Illinois To Get Early Access To Small Business Health Insurance MarketplaceBusinesses in five states will get an early look at the federal health insurance marketplace for small businesses, the Centers for Medicare and Medicaid announced Wednesday. The states are Missouri, Illinois, Ohio, New Jersey and Delaware (Shapiro, 9/3).Minneapolis Star-Tribune: Dayton Calls MNsure Rollout ‘Biggest Disappointment’Gov. Mark Dayton called the troubled rollout of the MNsure insurance exchange the low point of his first term in a campaign appearance Wednesday, but embraced the program’s successes in extending insurance coverage to those who historically struggled to get it. “I want to apologize for the excessive burdens it’s placed on you, your budgets and your people,” Dayton told a gathering of county officials. “The problems that have afflicted the inception of MNsure are my biggest disappointment in my term as governor. It’s got better, and it will continue to get better, but it still has a ways to go” (Condon, 9/3).The Associated Press: Dayton Apologizes For Troubled MNsure RolloutGov. Mark Dayton apologized to county officials Wednesday for the troubled rollout of Minnesota’s online health insurance exchange, calling the initial glitches with MNsure the biggest disappointment of his first term. But the Democratic governor also staunchly defended the federal Affordable Care Act before a crowd of about 200 county commissioners from across the state, the Star Tribune reported. Dayton, who is running for re-election, appeared at a general session of the Association of Minnesota Counties held in Alexandria. He thanked county leaders for their help with MNsure (9/3). Oregonian: Cover Oregon Board Will Vote Thursday On Whether Health Exchange Goes AwayBuffeted by continuing technological problems, the Cover Oregon board will vote Thursday on a new course for the state’s health insurance exchange – including whether it should even exist. If the board votes to dissolve Cover Oregon, the exchange’s remaining responsibilities — such as a consumer-assistance call center and outreach — would be handed off to state agencies including the Oregon Health Authority and the Oregon Insurance Division (Budnick, 9/3).