Durable goods orders for October fell 6.2%, more than double the expected drop of 3.0%, and September was revised from a gain of 0.8% to a drop of 0.2%. Ex-transportation, orders were down 4.4%, much worse than the forecast of a 1.6% decline.
Personal spending fell 1.0% in October, in line with the forecast. Personal income rose 0.3%, versus expectations of 0.1%, but September was revised lower from 0.2% to 0.1%. The core PCE Price Index, which is released in conjunction with spending and income, was unchanged, matching the consensus.
New home sales for October were 433,000 on an annual basis, below the estimate of 441,000, and down from September’s 464,000. October new home sales were down 5.3% from September, and September’s gain of 2.7% was revised lower to 0.7%.
The Chicago Purchasing Managers’ Index fell from 37.8 in October to 33.8 in November, below the forecast of 37.0 and the lowest reading since 1982. A reading below 50 suggests output is falling. New orders fell from 32.5 to 27.2 and employment receded from 41.5 to 33.4.
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