US: Focus on PMI and new home sales data - TDS

Research Team at TDS, suggests that the pace of new home sales in US is expected to cool in July from the post-crisis high of 592k last month.

Key Quotes

“TD looks for only a slight dip in sales activity to 590k while the market looks for a more substantial decline to a 580k level. TD looks for August Flash Markit PMI to reveal an acceleration in the manufacturing sector as the index rises from 52.9 to 53.4. This would mark the third consecutive improvement and represent the strongest print since October; however, the market is less upbeat and expects the index to decline to 52.6.

Lastly, TD is in line with the consensus and expects the Richmond Fed Manufacturing Index to pull back to +6 after recording a 20-point jump in July.”