The Central Bank said today that the annual rate of increase in Irish residential mortgages (including securitised mortgages) declined to 9 per cent in August, from 9.6 per cent in July - - the lowest annual rate of increase since mid-1987.¹ The bank said that there was a marked weakening in Irish residential mortgage lending in August, with the monthly increase of €508 million being just over half that recorded in July. While August is usually not a strong month for residential mortgage borrowing, this increase was exceptionally low, and was just a quarter of that recorded in August 2006.

Markets news on stocks, currencies and oil.

Markets news on stocks, currencies and oil.

The US Conference Board Consumer Confidence Index, which had improved moderately in August, posted a slight gain in September. The Index now stands at 59.8 (1985=100), up from 58.5 in August. The Present Situation Index decreased to 58.8 from 65.0 last month. The Expectations Index, however, increased to 60.5 from 54.1 in August. In related news, President Bush said in relation to the rejection of the $700 billion financial bailout plan by the House of Representatives on Monday:“As much as we might wish the situation were different, our country is not facing a choice between government action and the smooth functioning of the free market. We’re facing a choice between action and the real prospect of economic hardship for millions of Americans. And for the financial security of every American, Congress must act.”

S&P/Case-Shiller US Home Price Indices: Data for July shows record declines and a continuation in the trend of double digit falls across many cities in the prices of existing single family homes across the United States. Annual falls in Las Vegas, Phoenix, Miami and Los Angeles at -29.9%, -29.3%, -28.2% and 26.2%.

US firm Cook Medical, one of the world’s largest privately held medical device companies, is to invest €25 million, with the support of Government through IDA Ireland, in the expansion of its medical devices manufacturing and services facility - Cook Ireland Limited - in Limerick. Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD said today that the investment will add 200 high quality jobs over the next five years. It will also establish the Limerick operation as the sole global manufacturing site for Cook’s new drug eluting stent, Zilver PTX, for the treatment of peripheral arterial disease.

The Irish Government confirmed today that it was guaranteeing liabilities of about €400 billion of six financial institutions. The CSO reported today that the liabilities – mostly loans – of monetary financial institutions (i.e. credit institutions and moneymarket funds) amounted to €818 billion in June  and the national debt was €43 billion.

Irish Consumer sentiment improved in September. The overall Consumer Sentiment Index stood at 45.0 in September, compared to a figure of 43.4 in August. The corresponding figure for September 2007 was 74.3. The 3-month moving average increased to 42.7 from the 41.7 recorded in August. The 3-month moving average stood at 73.6 in September 2007.

Eurozone annual inflation is
expected to be 3.6% in September 2008 according to a flash estimate issued by
Eurostat, the Statistical Office of the European Union. It was 3.8% in August.

Markets news on stocks, currencies and commodities.