ARLINGTON, Va. -- The economic picture portrayed by NAFCU's Macro Data Flash reports is not pretty.

Vehicle sales declined from 16.3 million (annualized) in August to 16.2 million last month. However, this was up some from the year-to-date average of 16.1 million. Though car sales increased slightly, it was negated by slower light truck sales. According to NAFCU, the domestic manufacturers' share of the total vehicle market decreased from 52.4% in August to 51.3%.

Overall though, NAFCU said total vehicle sales remained solid despite declining consumer confidence and rising energy costs. The Federal Reserve's actions last month helped the financial markets and ensured that housing sector problems did not spill into vehicle sales.

New home sales also decreased on an annualized basis 8.3% in August and 21% from a year ago. The Northeast and Midwest reported solid monthly increases but the pace remained weak. New home sales were down double-digits in all four regions with the Midwest sustaining the least amount of decline at 11%.

Inventory increased from 7.6 months of supply to 8.2 months in August. Additionally, the median new home price has decreased 8% year-over-year, "the largest decrease in 37 years." However, NAFCU added, "As the economy regains momentum, the housing market should improve some time next year."

The second quarter real GDP growth was revised downward slightly from 4% to 3.8% , due to an upward revision in imports and downward revision to nonresidential structures. "Nominal corporate profits from current production were revised downward slightly to $1.642 trillion but remain near their record high. During the second quarter, corporate profits surged at an annualized rate of 27%," NAFCU Macro Flash data indicated.

Lack of homebuilding places "a significant weight on growth," the report read. "However, investment in nonresidential structures grew 26 percent annualized in the second quarter, the best performance since the series began in 1990."

What all this means is: "The final second quarter GDP figure indicates a strong pace of economic activity, but problems with housing and financial markets may make third quarter GDP growth much slower. Consumer spending, which has helped the economy in the past, slowed significantly during the second quarter."