Some Economists Find "Cheery Quality" to U.S. New Homes Sales Report
Despite 46k of downward revisions in the previous two months, which
pushed the pace of new home sales lower than expected
even with a 2.4% monthly rebound, economists said the Department of
Commerce’s July report was positive as the level of inventories saw a
notable reduction.
Eric Lascelles, chief economics and rates strategist at TD Securities,
said “there was an undeniably cheery quality to the
report,” as the overhang of supply fell to a 10.1-month supply, down from
June’s upwardly revised 10.7-month supply and marking a six-month low.
Ian Shepherdson, chief U.S. economist at HFE, added: “[W]e
still can’t say with any confidence that sales have hit
bottom…”