Thursday, July 1, 2021

June data starts out mixed: manufacturing strong, housing stalls


 - by New Deal democrat

June data started out this morning with the ISM manufacturing report. There was no big change from last month’s torrid pace. The overall index declined a very slight -0.6% to 60.6, while the leading new orders component declined by 1 to 66:

Any number over 60 implies a very strong economy, so this report indicates that the manufacturing sector is still red hot.

The last big May number, construction spending, was also reported, showing a definite cooling in the housing sector. Total spending actually declined a slight -0.3% from April, while the leading residential sector increased a slight 0.2%, even before taking into account inflation in housing materials:

In short, we start out the month with one leading sector, manufacturing, continuing to be very positive, while one long leading sector, housing, shows evidence of stalling if not a peak.