New home sales tumble, but core inflation slowly retreating

Last week’s economic data indicated further slowing in the housing market and overall economic growth. New home sales are now well below the long-run average and pending home sales suggest the trend will continue going forward, while consumer spending slowed in large part due to falling energy prices. Additionally, the S&P flash PMIs both fell, with services now well into contraction territory.

What we learned last week: (pg. 1)

• New home sales tumble
• Core inflation slowly retreating

What we’re watching this week: (pg. 2)

• ISM manufacturing activity forecasted to slow modestly
• Consumer confidence could edge higher
• Solid employment gains may continue