Analysts at TD Securities note that the US new home sales surprised to the upside in June, jumping 7.0% m/m (mkt: 5.1%), but it undershot the level expected by the consensus, coming in at 646k (mkt: 658k).
Key Quotes
“This was due to downside revisions in prior months (recall this is a very volatile series and revisions are usually large). The strength was driven by an increase in new home sales in the West, while sales in the Northeast declined for a second consecutive month.”
“Separately, The flash release of the Markit PMI surprised to the downside in July, dropping to 50.0 from 50.6 before (mkt: 51.0). This is the lowest level since the financial crisis (Sep 09) and suggests a downside risk to the ISM manufacturing survey released next week.”
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