In April, US existing home sales came out slightly better than expected. On a monthly basis, existing home sales rose by 2.9% M/M to 4.68 million, while the consensus was looking for an increase by 2.0% M/M. The previous figure was downwardly revised from -3.0% M/M to -3.4% M/M. Looking at the details, single family homes rose by 2.5% M/M, while condo’s increased by 6.4% M/M. Both median and average prices rose in April and also months’ supply increased from 9.6 to 10.2. Although the headline index came out slightly better than expected, the increase in months’ supply shows that housing market conditions remain very weak in the US.
EMU: German inflation falls in negative territory
In Germany, CPI inflation dropped more than expected in May. On a yearly basis, consumer prices dropped from 0.8% Y/Y to -0.1% Y/Y, while the consensus was looking for an outcome of 0.2% Y/Y. The significant decline in German consumer prices raises expectations that also euro zone inflation will show a sharper drop than preciously estimated and might even fall in negative territory in May.
