Case/Shiller and Consumer Confidence Worse Than Expected

Oxford, MS 5/31/2011 (PennyPayDay) -- The March reading of the Case/Shiller Home Price Index was slightly worse than forecast, -0.23% on the month and -3.61% from a year ago. This decline puts the index at a new low for the move at 138.16. The revision lower for February report made that a new low, but before that the low for the move was in April 2009 at 139.26.

The unadjusted annualized fall of 3.61% was the biggest drop since November 2009. Only DC was higher from a year ago, this city’s home prices gained 4.31%. Twelve of the twenty cities were down more than five percent in the last year; Minneapolis was the worst at -9.96%.

Bank of Canada holds steady on rates at 1.00%, as expected; they reiterate concern about strength of their currency.

The May reading of the Chicago PMI was much worse than forecast, it was down eleven points on the month to 56.6; the lowest result since November 2009.

The details were even a bit weaker than the headline figure.
Prices Paid fell three points to 78.6
Production was down fourteen points to 56.0, lowest since September 2009
New Orders was down thirteen points to 53.5, also the weakest since September 2009
Order Backlogs is down to 51.7 from 62.4 the month before
Employment fell three points to 60.8

Inventories was up eight points to 61.6, and is now above New Orders by eight points, the first time this relationship has inverted since March 2009.

The May reading of Consumer Confidence was down more than five points from the month before to 60.8, it had been expected to rise about one point on the month. It is the lowest result in six months.

Both key components were down on the month. The Present Situation fell to 39.3 from 40.2 the month before. But the Expectations component was down eight points to 75.2, lowest since last October.

The Labor Differential was down one point on the month to -38.3.

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