In October, existing home sales dropped 3.1% M/M to 4.98M, which was broadly in line with the consensus estimate. The previous figure was downwardly revised from 5.18M to 5.14M. Looking at the details, single family homes fell 3.3% M/M and condo’s dropped 1.8% M/M. Months supply rose from 10.0 to 10.2 in October. The regional data showed that sales were falling in all areas. Both median and average prices came out lower. These data indicate that existing housing market conditions that were stabilizing in recent months risks to deteriorate again, as credit availability and economic fear are two hurdles for prospective house buyers.
EMU: IFO business indicator falls to 16-year low
In Germany, the IFO business climate indicator came out weaker than expected in November. The headline figure plunged to a 16-year low (85.8 from 90.2), while the consensus was seeking for an outcome of 88.7. Both the current assessment (94.8 from 99.9) and expectations (77.6 from 81.4) sub-index showed significant declines. In November, the IFO indicator showed its sixth consecutive monthly decline which indicates that firms have become ever more pessimistic about their business situation and the outlook for the coming six months.
Euro zone industrial new orders dropped another 3.9% M/M in September, while a more modest decline (-2.8% M/M) was expected. The previous figure was downwardly revised from -1.2% M/M to -1.5% M/M. On a yearly basis, industrial orders fell 1.1% Y/Y (from -6.4% Y/Y). Looking at the details, basic metals (-5.1% M/M from 0.0% M/M) and transport equipment (-3.8% M/M from -11.1% M/M) fell sharply and also machinery & equipment (-1.9% M/M) and electrical & optical (-1.1% M/M) declined. Textiles and chemicals showed a slight rebound.
In Belgium, business confidence worsened significantly in November. The business confidence level fell from -14.8 to -23.7, while a figure of -17.0 was expected. The details showed a sharp deterioration in manufacturing (-27.1 from -14.9), construction (-10.0 from -5.9) and business services (-14.9 from -4.4).
