June data starts out mixed: manufacturing strong, housing stalls, 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.