Econoday economists expected new home sales for April to come in at a seasonally-adjusted annualized rate of 955,000. Instead home sale came it at 854,000 badly missing expectations.
In addition, the March monster month of 1.021 million was revised lower to 917,000.
These are good numbers but much weaker than expected and reported. They are also headed in the wrong direction.
Economic Data is Weakening on Four Fronts
Om May 21, I reported Economic Data is Weakening on Four Fronts
- Existing Home Sales, May 21: This report
- Housing Starts, May 18: Housing Starts Increasingly Volatile, Way Lower Than Expected in April
- Retail Sales, May 14: Hot Potato Money in Play as Retail Sales Unexpectedly Flop
- Jobs, May 7: Huge Jobs Disappointment 732,000 Under Consensus With Big Negative Revisions Too
Retail sales and Jobs badly missed expectations as did existing home sales and housing starts.
We can add new home sales to the list of weakening reports.
Weakening does not mean weak, yet.
But given the massive amount of stimulus, including paying people more to be unemployed than they made employed, the trends need a sober look.
Spot the Change