- Durables Ex Transports for June rose 1.0% versus estimates of a .7% increase and an upwardly revised 1.5% gain in May.
- Initial Jobless Claims for last week fell to 298K versus estimates of 310K and 305K the prior week.
- Continuing Claims fell to 2475K versus estimates of 2458K and 2498K prior.
- New Home Sales for June fell to 1131K versus estimates of 1150K and 1166K in May.
BOTTOM LINE: Orders for US-made durable goods rose more than forecast in June, pointing to momentum in manufacturing that’s likely to keep the economy growing, Bloomberg reported. Orders for computers and electronics rose 3.4% versus a 2.1% decline in May. Communications equipment orders surged 8.3% versus a 6.6% gain the prior month. Bookings for non-defense capital goods excluding aircraft, a gauge of future business spending, rose .4% versus a 1.3% gain the prior month. I continue to believe manufacturing is decelerating, but will remain healthy as companies rebuild record low inventories.
The number of US workers filing first-time applications for state jobless benefits fell unexpectedly to 298,000 last week, a sign the labor market remains strong, Bloomberg said. The four-week moving average fell to 312,750 from 317,000 the prior week. The unemployment rate for those eligible for benefits, which tracks the US unemployment rate, remained at 1.9%. I continue to believe the labor market will remain healthy over the intermediate-term without generating substantial unit labor cost increases.
Americans bought slightly fewer new homes than expected in June, Bloomberg reported. The median price rose 2.3% from a year ago to $231,300. The number of unsold homes increased to a 6.1-month supply at the June sales pace versus 5.9 months in May. Sales fell 11.3% in the Northeast, 7.9% in the Midwest and 6% in the South. They rose 8.2% in the West. I continue to believe housing is slowing to more healthy and sustainable levels and that mortgage rates have peaked for the intermediate-term.
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