US: Weakness in economic data – TDS

Analysts at TD Securities note that the US new home sales surprised to the downside in May, dropping a large 7.8% m/m, following an upward-revised 3.7% contraction in April.

Key Quotes

“This drop brings the headline back to January levels (keep in mind this series is very volatile).”

“Similarly, consumer confidence declined more than expected to 121.5 in June, with the drop being widespread as both the present situation and expectations components declined vs May. Despite this drop, consumer confidence remains at very solid levels, which should support private consumption in the near term (recall consumption is tracking close to 3% in Q2).”