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Good Morning! Today we will take a look at consumer confidence, the ongoing demand for durable goods and new home sales.
 
The Line with Greg Heym
Good Morning!
Today we will take a look at consumer confidence, the ongoing demand for durable goods and new home sales.
The Conference Board reported yesterday that consumer confidence dipped to 100.9, down from 101.8 in September.

Increasing coronavirus cases, continued job losses and the uncertainty around the presidential election were the most likely factors in this decline.

While this is not the best news, it’s certainly not the worst. As you may remember, consumer confidence posted the highest increase in 17 years last month, so to come in slightly below that level is not bad.

That said, with consumer spending responsible for more than two-thirds of GDP, we need them to be as confident as possible!
Orders for durable goods, which include cars and appliances, rose 1.9% in September. This figure was much higher than expected, and marked the fifth straight month of growth.

Sales of cars and trucks have been very strong, helped by low interest rates and more people moving to the suburbs. Core orders, which exclude defense and transportation, rose 1% and were above pre-pandemic levels for the second month in a row.

This is very good news for the economy, the only concern is the recent spike of coronavirus cases could put both orders and the ability to produce these goods at risk.
After four straight months of strong growth, sales of new single-family homes fell 3.5% in September.

Hey Greg, I thought you said housing was on fire, what happened?

While this data is certainly surprising, the run of amazing numbers couldn’t go on forever. Despite September’s decline, new home sales are 32% higher than a year ago, and 24% higher than January’s pre-coronavirus high.

I expect these numbers to start climbing again next month, as more inventory has hit the market.
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