Premium
- New York
- London
- Barcelona
- Tokyo
- Sydney
Search
KBC News Picks
0
0
US: Housing market is not yet recovering
Thu, Jun 26 2008, 07:42 GMT
by KBC Market Research Desk
Durable goods orders were, as expected, unchanged in May, after falling a re-vised 1.0% M/M in April. Transportation orders recovered (2.6% M/M from -8.3% M/M) while machinery orders (-5.3% M/M from 5.1% M/M) worsened. On a yearly basis, durable orders were 1.5% Y/Y down in May following a 3.8 % Y/Y decline in April. Orders less transportation declined (0.9% M/M) in May, after a revised 1.9% M/M rise in April, which is broadly in line with the expectations. Shipments of non-defence capital goods less aircraft, which is a good predictor of business investment in equipment & software, rose by 0.6%M/M following a 0.9% M/M rise in April.
New home sales declined 2.5% M/M in May to an annual 512 000 units, which is in line with the expectations. Sales were slightly higher in the South and Midwest, but fell again in the West and Northeast. The homes for sale (inventories) fell only 8 000 from an inventory of 461 000 to 453 000. This resulted in a months’ supply of 10.9, which is again higher than in April and barely below March record high of 11.4. These figures show that the inventories are still way too high and the housing market is not yet recovering. Looking at the price data, the median price fell 5.7% Y/Y to $231 000, while the mean price rose 0.5% Y/Y to $311 300, but these price data should be considered as less reliable than the S&P Case Shiller house price in-dex, as they are influenced by compositional changes..
Other: June CBI industrial trends indicator confims expectations that retail sales will fall agian
In the UK, the CBI industrial trends indicator came out at -9 in June after reaching -14 in April, while a slower decline is expected in July (-7). Orders placed were better than last month (-12 from -23) and are expected to do broadly the same in the next month (-13). Sales for the time of the year were also weak (-21) and are expected slightly higher (-17) in July. Looking at the sectors, clothing retailers, booksellers & stationers and retailers tied to the housing market performed poorly. Grocers, how-ever, reported an increase in sales. Compared to the surprising retail sales last week, these figures are much less positive and raise fears that retail sales will fall again in June, showing that pressures on household budgets continue.
Published on Thu, Jun 26 2008, 08:52 GMT
Archive
- US: Pending home sales unexpectedly rebound
Published On Thu, Oct 9 2008, 08:59 GMT - EMU: German factory orders rebound in August
Published On Wed, Oct 8 2008, 07:57 GMT - US: Payrolls confirm recession fears
Published On Mon, Oct 6 2008, 07:54 GMT - US: Another very weak claims report
Published On Fri, Oct 3 2008, 08:02 GMT - US: Manufacturing PMI drops to lowest level since 2001
Published On Thu, Oct 2 2008, 08:15 GMT
KBC Bank
| Havenlaan 12, 1080 Brussels
http://www.kbc.be/dealingroom | piet.lammens@kbc.be
Legal disclaimer and risk disclosure
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.
