In October, US existing home sales rose by 10.1% M/M to a total number of 6.10 million, while the consensus was looking for a figure of 5.70 million. The previous outcome was however slightly downwardly revised from 5.57M to 5.54M. The details show that both the single-family (9.7% M/M) and the condo’s (13.2% M/M) sub-index surprised on the upside in October. Also months’ supply improved significantly, falling from 8.0 to 7.0, which is the lowest level since February 2007. Both the median and average prices declined. The expiration of the tax credit might have spurred first-time buyers. Nevertheless, the renewal of the new homebuyer’s tax credit early this month might give some additional support to housing market activity in 2010, after a likely initial fall back in the next two months.
EMU: PMI’s improve further in November
In the euro zone, the manufacturing sector expanded for the second straight month in November. The manufacturing PMI rose from 50.7 to 51.0, slightly below the consensus estimate of 51.2. National data showed an upward surprise in Germany, while French manufacturing PMI showed an unexpected decline. Euro zone services PMI, on the contrary, surprised on the upside of expectations rising from 52.6 to 53.2, while a figure of 52.9 was expected. The composite rose to 53.7, the highest level in two years, raising expectations that the euro zone economy will expand further in the fourth quarter.
