Rosy Economic Picture Expected in Reports

The year probably will end as it began, with a series of reports this week showing continued strong economic growth in the U.S. The National Assn. of Realtors on Tuesday is likely to report that sales of previously owned homes rose 3.1% in November after falling to the lowest level in almost two years a month earlier, analysts said. Home resales probably rose last month to an annual rate of 4.94 million units, analysts said. That’s following October’s 6.6% drop in resales to a 4.79-million annual rate, the slowest pace since January 1998. The existing-home sales report is a key gauge of economic growth because sales of previously owned homes account for 85% of all houses on the market.

Also Tuesday, the Conference Board is likely to report that consumer attitudes in December are little changed from the month before. With jobs plentiful and stocks soaring, confidence isn’t expected to decline much and the confidence index should fall only slightly, to 134.8 from 135.8 in November, analysts said.

In other reports due this week:

* Weekly figures on first-time jobless claims to be released Thursday will probably show that demand is still strong for workers. The Labor Department reported that claims rose by 14,000 to 281,000 in the week ended Dec. 18. Even another increase wouldn’t mean much, analysts said.

* The Conference Board will release the index of leading economic indicators Wednesday. The index is expected to rise 0.2%. The LEI is designed to forecast growth six months out, and an increase would suggest the current expansion will in February become the longest in history.