Orders for durable goods fell in May. The 1% decline was the result of a decline in demand for appliances, transportation, machinery, computers and electrical equipment. The drop came despite an increase in business capital spending plans.
Home prices rose 1.1% in April – the second monthly gain for the spring selling season. However, on an annual basis growth in prices posted a sharp slowdown, rising 10.8% year-on-year…a decent gain, but the slowest pace since March 2013.
Existing home sales rose for a second month in May, with a 4.9% increase to an annual pace of 4.89 million units. Expanding inventories and improvements in the labor market are supporting sales.
Source: National Association of Realtors
New home sales rose in May to the highest level in six years, increasing 18.6% and bringing sales to an annual pace of 504,000 units – the highest since May 2008.
Consumer spending rose less than expected last month, with a .2% gain as consumers spent on new cars, but little else.
The US economy shrank the most in five years in the first quarter, with a 2.9% contraction in growth (much steeper than previous estimates). The sharp drop showed broad weakness, and signaled that other factors beyond bad weather were at play.