It’s Friday and that means it’s time to review the latest economic data and identify which pockets of the economy are heating up and which are slowing down. Don’t worry about catching every headline and every report throughout the week—I recap all of the most important news impacting your wealth right here every Friday. Let’s take a look at this week’s big headlines…
New Home Sales
On Wednesday, the U.S. Census Bureau released its data for New Home Sales. Now, since these numbers surged higher in March, we expect there to be a bit of a drawback. In fact, this week’s report slowed down to an annualized rate of 677,000 vs. April’s rate of 694,000. Prior to the April report, this metric had been slow. However, following the steep upward revisions last month, the numbers picked up.
Existing Home Sales
Then, on Thursday, the U.S. Census Bureau released its data for Existing Home Sales. The good news is that existing home sales for April are expected to hold onto the gains they made in February and March. In fact, the data reveals a consensus annualized rate of 5.6 million. However, aside from the recent gains, resale trends remain flat, and year-on-year readings are even negative.
Durable Goods Orders
In this morning’s Durable Goods Orders report, there was some underlying strength, despite the 1.2% pullback due mainly to aircraft orders, which had been strong, but are finally facing some headwinds. However, ex-transportation orders, excluding aircraft, were flat in March and, therefore, saw some improvement in April. In fact, this metric ticked up with a gain of 0.6%, and the disappointing decline of core capital goods in March rebounded 0.7% in April.
University of Michigan’s Consumer Sentiment Index
Also, this morning, the University of Michigan reported that consumer sentiment is expected to hold steady for May’s final reading at a solid 99.0, which isn’t much of a change from April’s reading of 98.8. However, year-ahead inflation expectations are still edging a little bit higher.
That’s all I have for you this week. I’ll be in touch again next week with the latest ratings out of Portfolio Grader.
Until next week,