US: Economic data showed some signs of moderation - ANZ

The research team at ANZ notes that the US data showed some signs of moderation overnight, although outright levels remain elevated suggesting the economy continues to expand at a moderate pace.

Key Quotes

“April consumer confidence dipped to 120.3, with both the present situations and expectations indices falling. The fall only partly reversed the surge in March, with the headline index still close to a 16-year high. The details point to a strong labour market with respondents saying that jobs are plentiful rather than hard to find remaining close to a 16-year high (11.7 vs last 12.8). Inflation expectations remained stable at 4.7%. Elsewhere, new home sales were at 621k on an annualised basis, from 584k the previous month. The housing market continues to signal healthy overall economic conditions as demand remains strong despite reduced affordability due to higher interest rates and prices.”

“Finally, the Richmond Fed manufacturing index was at 20 (mkt: 16; last: 22). The number of employees dropped to 5, from 20, while the work week fell to 8, from 21, driving the moderation in the business assessment. Additionally, shipments rose to 25, from 17; new orders remained at 26; and wages were steady at 21. Earlier in the week, the April Dallas Fed manufacturing activity index held up well at 16.8. The new orders rose sub-index to 11.5 (9.5) and the number of employees was stable at 8.5 (8.4).”