Economic wrap: a few U.S. disappointments -Westpac

Analysts at Westpac offered an Economic Wrap.

Key Quotes:

"US new home sales jumped 12.4% in July (vs -2.0% expected) to a cycle high of 654k. The median price fell 5.1%, though, to $294,600 (this cycle’s high is $321,300 in April). US manufacturing PMI slipped from 52.9 to 52.1 (vs 52.6 expected), but remains in expansion mode (as it has been since 2009).Richmond Fed’s manufacturing index fell from +10 to -11, although the detail was mixed (current conditions seen as volatile but expectations were upbeat). Conference Board consumer confidence fell from -7.9 to -8.5.

Economic Event Risks Today

NZ trade balance for July should correct lower to -$400m, thanks to a seasonally weak month for exports and perhaps some payback from strong exports over recent months.

Australian construction work done is estimated to have fallen 2% in Q2. The mining downturn continues to outweigh gains in the housing and public sectors.

US existing home sales have shown evidence of a renewed uptrend in recent months. A broadly flat outcome is expected in July, with downside risks."