Economy in Brief: May 2020

• Pending home sales fell 21.8% in April. • Double-digit declines were recorded for second month across the country. The National Association of Realtors (NAR) reported that pending home sales plummeted 21.8% in April (-33.8% y/y). [...]

• Revised GDP figures continue to show sharp falloff in activity. • Profits decline is greatest since 2008. • All sectors decline, except housing. • Price inflation remains under wraps. U.S. GDP declined 5.0% (SAAR) last quarter, [...]

Italy's consumer and business indexes plunge in May compared to their last values in March. The April surveys were skipped because of dislocations and risks associated with the coronavirus. The business index in May is at its all-time [...]

• Durable goods orders collapsed 17.2% m/m in April, the largest decline since August 2014, on top of a downwardly revised 16.6% m/m drop in March. • Transportation orders plummeted 47.3% m/m after a 43.1% m/m fall in March. • Both [...]

• Initial jobless claims decreased to a still extremely-elevated 2.123 million in the week ending May 23. • Federal Pandemic Unemployment Assistance program at 1.19 million new filers; previous week revised down substantially driven [...]

Overview: The French economy shows the ongoing impact from the coronavirus and the steps taken to curtail it. The manufacturing climate gauge has a 1.3 percentile standing (rarely weaker). Manufacturing production expectations have a [...]

• Purchase applications continue to rise. • Refinancings ease. The Mortgage Bankers Association reported that its Mortgage Loan Application Index rose 2.7% (75.1% y/y) last week and reversed the prior week's decline. Purchase [...]

• Gasoline prices rise to just under $2.00 per gallon. • Crude oil prices continue to increase. • Natural gas prices improve a bit. Retail gasoline prices increased to $1.96 per gallon (-30.5% y/y) in the week ended May 25 from $1.88 [...]