- Durables Ex Transportation for April fell 1.1% versus estimates of a .5% gain and an upwardly revised 3.5% increase in March.
- New Home Sales for April fell to 1198K versus estimates of 1135K and a downwardly revised 1142K in March.
BOTTOM LINE: US orders for durable goods fell more than expected last month as demand for aircraft, computers and defense hardware slowed, raising concern companies plan to curb spending, Bloomberg said. Orders for commercial aircraft slumped 32% after a 68% surge the prior month. Auto bookings declined 1.6%. Bookings for non-defense capital goods excluding aircraft, which tracks future business investment, fell 1.7% versus a 3.6% rise the prior month. Durable goods orders will likely slow more from current levels as economic growth decelerates, however corporate spending should remain relatively healthy.
Sales of new homes in the US unexpectedly rose in April to the highest in four months, Bloomberg reported. A strong job market is boosting the demand for homes, notwithstanding higher borrowing costs. The number of unsold new homes fell to 5.8 month’s worth at the current sales pace from 6.0 the prior month. The median price of a new home rose .9% versus last year to $238,500. Sales rose 8.2% in the Northeast, 7.8% in the South and 2% in the West. Sales fell 1.1% in the Midwest. Today’s data is a positive and lends credence to a slower housing market, not a collapse. I continue to expect housing to slow to more healthy sustainable levels.