Economy Week Ahead: U.S. Existing-Home Sales and Durable Goods, Eurozone Flash PMIs
October 20 2019 - 3:29PM
Dow Jones News
WSJ Staff
In the week ahead, data on U.S. durable-goods orders, along with
eurozone figures on activity at factories and service providers,
will be watched for signs of a further slowdown in
manufacturing.
Tuesday
The National Association of Realtors releases figures on
existing-home sales. Americans bought more previously owned homes
in August than in July. Sales rose 1.3%, the strongest gain since
March of last year. Economists surveyed by The Wall Street Journal
expect sales pulled back in September and posted a 0.2% decline.
This week's report, in addition to figures on September new-home
sales from the Commerce Department on Thursday, will offer fresh
insight into how home buyers are responding to competing forces:
While mortgage rates are historically low, the housing sector has
been constrained in part by low inventory of affordably priced
homes.
Thursday
The Commerce Department issues figures on September
durable-goods orders. Economists expect orders for durable goods --
manufactured products intended to last at least three years -- fell
0.8% in September from a month earlier. In August, sales rose 0.2%,
marking the third straight month of gains. The durable-goods
figures will follow recent U.S. industrial production data that
added to evidence of a global manufacturing slowdown. The Federal
Reserve reported on Thursday that manufacturing output, the biggest
component of industrial production, fell 0.5% in September from a
month earlier.
Surveys of purchasing managers in the eurozone are also due out
Thursday. They are expected to show a stabilization of business
activity in October, albeit at a very weak level. Economists expect
the composite Purchasing Managers Index -- an aggregate measure of
manufacturing and services activity -- to rise to 50.3 from 50.1 in
September, barely above the 50.00 level that separates expansion
from contraction. The surveys will be released as officials from
the European Central Bank begin the final session of their policy
meeting. They are expected to leave the central bank's key interest
rate unchanged at minus 0.5%, having lowered it in September and
restarted a paused program of bond purchases.
Friday
The University of Michigan will issue final results of its
October consumer sentiment survey. Preliminary results showed U.S.
consumers were feeling more positive in early October, but were
still cautious. Consumer spending has helped drive the U.S. economy
this year, but recent data have suggested Americans may be pulling
back on shopping. Retail sales -- a measure of purchases at stores,
at restaurants and online -- decreased a seasonally adjusted 0.3%
in September from a month earlier, the first monthly decline since
February.
(END) Dow Jones Newswires
October 20, 2019 15:14 ET (19:14 GMT)
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