ISM NonManufacturing and Pending Home Sales: Better News

ISM NONMANUFACTURING


** The ISM nonmanufacturing composite index was stronger than forecasts, rising to 55.4 in March from 53.0 in February. The general sentiment business activity index improved significantly to 60.0 from 54.8.

BOTTOM LINE: This is another solid reading on March economic activity (adding to the message from payrolls and ISM manufacturing) which is consistent with our ‘springing ahead’ theme. The nonmanufacturing composite index rose in March to the highest level since May 2006 and order growth was the strongest since August 2005. Fourteen of the 16 nonmanufacturing industries surveyed reported growth in March and the ISM noted that “Respondents’ comments are mostly positive about business conditions and the direction of the economy.”

PENDING HOME SALES

** Pending home sales were stronger than expected, rising 8.2% in February. Over the last 12 months, pending home sales have increased 17.3% versus an 8.6% year-over-year gain in January (based on not seasonally adjusted data). Pending home sales rose in every major region apart from the West—sales rose in the Northeast by 9.0%, in the Midwest by 21.8%, in the South by 9.2%, but fell 4.8% in the West (pending home sales remain above year-ago levels in all four regions).

BOTTOM LINE: The rebound in pending home sales in February likely reflects an improvement in activity ahead of the second expiration of the homebuyers’ tax credit at the end of April. These data point to a pickup in existing home sales in the early Spring (please see chart attached; we will publish an updated Housing Monitor later today).

Source RDQ

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier