Home sales fell in April. Here are the five things we learned from U.S. economic data released during the week ending May 24.
Sales of previously home sales slipped in April. Existing home sales declined 1.9 percent to a seasonally adjusted annualized rate (SAAR) of 4.14 million units. The National Association of Realtors reports a matching 1.9 percent year-to-year sales drop. Sales fell in all four Census regions on both a month-to-month and year-to-year basis. Inventories continued their recent growth spurt, rising 9.0 percent to 1.21 million units (the equivalent of a tight 3.5-month supply). The median sales price of $407,600 was up 5.7 percent from a year earlier. The press release noted a rise in “upper-end” homes coming onto the market.
New home sales also declined in April. Sales of new single-family homes dropped 4.7 percent to a seasonally adjusted annualized rate (SAAR) of 634,000. The Census Bureau measure was down 7.7 percent from a year earlier. Among the four Census regions, only the Midwest saw sales grow on a month-to-month (+10.0 percent) and year-to-year (+27.5 percent) basis. There were 480,000 new homes available for sale, up 2.1 percent for the month and 12.1 percent from a year earlier. The median sales price of $433,000 was up 3.9 percent.
Consumer sentiment slumped to a five-month low in May. The University of Michigan’s Index of Consumer Sentiment lost 8.1 points to a seasonally adjusted 69.1 (1996Q1=100). Even with the drop, the index remained 17.1 percent above its year-ago level. The current conditions index shed 9.4 points to 69.6, while the expectation measure fell by 7.2 points to 68.8. The press release noted concerns about the labor market and the “prospect of continued high interest rates.” Consumers anticipate 3.3 percent inflation over the past year, with long-term inflation expectations at +3.0 percent.
Economic growth slowed in April. The Chicago Fed National Activity Index (CFNAI) lost 19 basis points to -0.23. A negative CFNAI reading indicates the U.S. economy was growing slower than its historic average. Only 20 of the 85 economic measures that make up the CFNAI made positive contributions to the index, with the other 65 having a negative impact. Among the four major categories of components, only those linked to employment made a positive contribution. Dragging down the CFNAI were components for production, sales/orders/inventories, and personal consumption/housing. The CFNAI’s three-month moving average improved by 18 basis points to +0.01.
Durable goods orders edged up in April. The Census Bureau estimates orders for manufactured durable goods grew 0.7 percent to a seasonally adjusted $284.1 billion, its third consecutive monthly increase. Transportation goods orders rose 1.2 percent, boosted by strength for civilian aircraft and automobiles. Net of transportation goods, orders were up 0.4 percent. Rising were orders for primary metals (+1.3 percent), computers/electronics (+0.6 percent), machinery (+0.4 percent), and fabricated metal products (+0.3 percent). Durable goods shipments jumped 1.2 percent to $285.7 billion.
Other U.S. economic data released over the past week:
- Jobless Claims (Week ending May 18, 2024, First-Time Claims, seasonally adjusted): 215,000, -8,000 vs. the previous week, -12,000 vs. the same week a year earlier). 4-week moving average: 219,750 (-1.3% vs. the same week a year earlier).
- FOMC Minutes
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What We Learned About the U.S. Economy Last Week 