New business incorporations, which are available with a lag of several quarters, also show a downward trend for the most recent 12-month period ending in January 1998. Some sectors and indicators are still exhibiting strength. Residential real estate, buttressed by low interest rates, continues to shine. Housing permits grew by 0.9 percent in the 12-month period ending in September. Sales of existing homes were at record levels in the second quarter, exceeding the prior year's record by 14.1 percent.
Home prices continue to rise.
Auto purchases, another sector affected by low interest rates, are doing well. Real sales, as measured by motor vehicle sales tax revenues, were up 6 percent in the 12-month period ending in October. So far, the industry has not blinked. Wage and income growth are still solid. Real personal income in the second quarter was 2.9 percent above the prior year, and real wage and salary disbursements in the second quarter were 4.1 percent above the prior year.