Factory Orders (May)
- Orders fall 0.5% in May due to a larger drop in military spending, concluding the consecutive three months of gains. It follows the +0.8% in April, +1.5% in March, and +1.7% in February. Economists originally predicted the factory orders to slip 1.3%.
GDP (1Q14-T)
- 1Q14 came in weaker than expected, down 2.9 percent following an increase of 2.6 percent in the fourth quarter of 2013. This is far below the expected -1.8% and the worst reading since Q1 2009.
Durable Goods (May)
- Durable goods in May fell 1%, due to the decline in demand for transportation, machinery, electronic products, electrical equipment, appliances, and defense capital goods. Many analysts predict that the economy will increase by 3.5% in the April-June quarter.
Chicago PMI (Jun)
- Chicago PMI down 2.9 points to 62.6 in June. Although it is a decline, it is still above last year’s 52.0 reading. June’s data mark the 14th consecutive monthly expansion as well as the third consecutive month above a 60 reading.
Construction Spending (May)
- US construction spending rises slightly by 0.1% in May, following a gain of 0.8% in April. The severe winter contributed to the industry’s struggle, causing reduced building productivity in many areas. Economists predict that housing and overall construction will improve in coming months.
ISM Mfg (June)
- ISM index of national factory activity remains almost unchanged from May’s 55.4 to June’s 55.3 reading. Although economists polled by Reuters expected a 55.8 reading, a reading above 50 indicates expansion in manufacturing for the 13th consecutive month.
Auto Sales (June)
- Auto sales in U.S. increased 1.2%, the best annualized number in 8 years. With low interest rates and a brighter economic outlook as its main drivers, the sales of new-vehicles grew to 16.98 million vehicles in June, dispelling fears of a market slowdown.
-Regina Yip - Research Associate, IAS
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