In May, US existing home sales rose by 2.4% M/M to a total number of 4.77 million (annualized), while a number of 4.82 million was expected. The April figure was downwardly revised from 4.68 million to 4.66 million. The increase was driven by a 6.1% M/M rise in condos, while single family homes rose by 1.9% M/M. Months’ supply dropped from 10.1 to 9.6, while both median ($173 000 from $166 600) and average ($215 600 from $208 800) prices rose. Nevertheless, it is difficult to draw firm conclusions as the series remains very volatile.
In June, the Richmond Fed manufacturing index improved further after jumping into positive territory in May. The headline index rose from 4 to 6, marginally above the consensus estimate of 5. The breakdown shows that the improvement was due to increases in new orders (16 from 10), order backlog (8 from -3), capacity utilization (7 from 5), vendor lead time (0 from -4), number of employees (-6 from -12), average workweek (8 from 5) and wages (9 from 5), while shipments dropped from 9 to 2.
EMU: services PMI drops marginally in June
Euro zone manufacturing PMI showed its fourth consecutive increase in June. The headline index rose from 40.7 to 42.4, while the consensus was looking for a slightly lower outcome (42.1). German manufacturing PMI however surprised on the downside of expectations rising from 39.6 to 40.5, while a figure of 41.0 was expected. Looking at the euro zone details, output, new orders, new export orders, finished goods and employment all improved. The sharp decline in both input and output prices moderated further in June. Nevertheless, the manufacturing PMI remains significantly below 50, which indicates that the sector is still contracting.
Also in the euro zone, services PMI showed an unexpected, albeit marginal decline. In June, the headline index dropped from 44.8 to 44.5, while a slight increase (to 45.6) was forecasted. Although the headline index deteriorated, the details painted a less pessimistic picture with both business expectations and employment improving in May. Prices charged remained very low at 41.9.
