New Home Sales Beat Forecasts
In an otherwise slow data release day, the Commerce Department reported that new home sales were up in June by 7.0% to a seasonally-adjusted annual rate of 646,000 homes. Data from May was revised down, from 626,000 to 604,000 units, and both April and March readings were also revised down.
While the reading beat forecasts, the Street’s concerns about housing and manufacturing holding back the economy continue, despite countervailing indicators of strong consumer confidence.
Europe and Especially Germany Show Slowing Growth
European PMI readings, an indicator of manufacturing health of the region, were dismal, especially in Germany’s manufacturing PMI, which fell from 45 to 43.1, well within contraction territory. The Eurozone manufacturing readings came in at 45.4, and the composite Euro PMI number was barely above the expansion/contraction threshold at 51.5.
Based on CD Media’s economist sources, there is increasing speculation that the ECB will further ease interest rates tomorrow.