Auto Sales Advanced in May
Sales of autos rose to an annual rate of 9.9 million units in May following a 9.31 million pace in April. The average of April-May sales exceeds the first quarter average of 9.5 million units. Auto sales will have to have to post a strong decline in June to fall short of the first quarter performance. This has a positive implication for consumer spending and real GDP in the second quarter.
Pending Home Sales Index Surges in April
The Pending Home Sales Index (PHSI) of the National Association of Realtors increased 6.7% in April, the third consecutive monthly gain. According to the National Association of Realtors, PHSI leads actual sales of existing homes by 1-2 months. Sales of existing homes rose in February and April. The latest PHSI suggest that an increase in existing home sales during May is most likely.
