Weekly Economic Report
October 27, 2014
U.S. Inflation Holds U.S. Consumer Price Index - September U.S. consumer prices edged up 0.1% in September, a very mild move, but not the consensus call, a flat reading. The year-over-year trend held steady at 1.7% regardless (actually slowed from 1.7% to a 6month low of 1.66%), but the core measure of inflation (excluding food & energy) ticked 0.1% higher, below the consensus call for a 0.2% rise. The good news is that inflation is tame, but this could be bad news for consumer spending.
U.S. Existing Home Sales Rebound U.S. Existing Home Sales - September U.S. existing home sales rose a more-than-expected 2.4% in September to 5.17 million units annualized, the highest level in exactly one year. After the 1.8% setback in August, this report extends the string of improvement that started up in spring. Pending home sales were down 1% in the prior month, and the month’s supply of homes and condos slipped to a 6-month low of 5.3, well within normal. Overall, this is a positive report and signals that we should continue to see housing receive support from steady job growth.
Important Economic Statistics
The Week Ahead U.S. Pending Home Sales - September - Monday, October 27, 2014 at 10:00am
U.S. Real GDP – Q3 - Thursday, October 30, 2014 at 8:30am
Canadian Real GDP at Basic Prices - August - Friday, October 31, 2014 at 8:30am
U.S. Personal Income – September - Friday, October 31, 2014 at 8:30am
Ronald Chow, Chief Economist • ronaldchow@crescentschool.org