U.S. data reviewed: home sales positive, manufacturing not so - ANZ
|U.S. data was reviewed by analyst sat ANZ, noting the positive homes sales data, but highlighting manufacturing disappointments.
Key Quotes:
New home sales surged by 16.6% m/m to a 619,000 annualised in April. This was well above the 520,000 market expectation and the highest level since January 2008. The three previous months were also revised higher: March sales were revised up to 531,000 (initial: 511,000); February sales up to 538,000 (initial: 519,000); and January sales to 526,000 (initial: 521,000).
The April surge was led by a 52.8% jump in the Northeast region to 55,000, the strongest pace for the region since October 2007. Sales in the South were up 15.8% to 352,000, the strongest pace since December 2007. Sales fell 4.8% in the Midwest and rose 18.8% in the West. The supply of new homes for sale fell to 4.7 months from 5.5 months in March. The median sales price rose by 7.8% m/m, or 9.7% y/y, to $321,100, following a 2.8% fall in March.
Richmond Fed manufacturing came in below expectations at -1 (mkt: 8; last: 14). However, the release noted that despite the soft current conditions, firms remained optimistic about future business conditions. Expectations in May were little changed from April.
Firms expect moderate growth in shipments and in the volume of new orders in the six months ahead. In addition, manufacturers looked for rising backlogs of new orders. Producers anticipated a decline in capacity utilization and unchanged vendor lead times in the next six months. They are also looking for modest growth in hiring during the next six months. Wage increases were expected to continue to be widespread."
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