FAST FACTS ABOUT TODAY’S ECONOMIC DATA:
* Richmond Fed Manufacturing plunges to -8 in December.
* Case-Shiller Home Price Index slowed to +5% Y/Y in October.
RICHMOND FED MANUFACTURING INDEX TURNS NEGATIVE IN DECEMBER:
In December, the Richmond Fed’s Manufacturing Composite Index plunged -22 points to -8. In fact, this is the first negative reading since September 2016 and the lowest level since February 2016. There were notable declines in Current New Orders (-26 points to -9), Shipments (-37 points to -25), Backlogs (-33 points to -18), Capacity Utilization (-25 points to -16), Average Workweek (-8 points to +3), and Wages (-3 points to +31). However, it should be noted that Number of Employees increased +3 points to +14. As far as expectations for the next 6 months, there were declines across the board, with double-digit declines in Future Shipments, New Orders, and Capital Expenditures. Lastly, Current Prices Paid fell -0.34 points to 4.36% annualized and Current Prices Received increased +0.13 points to 2.26%, whereas, Future Prices Paid fell -1.02 points to +2.90% and Prices Received fell -0.29 points to +2.31%.
S&P CORE LOGIC (CASE-SHILLER) HOME PRICE INDEX SLOWED TO +5% Y/Y IN OCTOBER:
The S&P/Core Logic (commonly known as the Case-Shiller Index) 10 City composite slowed to +4.71% Y/Y (versus +4.86% previously, not seasonally adjusted) and the 20 City index slipped -0.01% M/M and slowed to +5.03% Y/Y (versus +5.21% prior) in the month of October. In fact, this is the slowest pace since October 2016. Note that all 20 cities home prices are still up on a Y/Y basis, led by Las Vegas (+12.85%), San Francisco (+7.90%), and Phoenix (+7.67%). On the other hand, home prices in Washington D.C. and New York City were only up +2.87% Y/Y and +3.14% Y/Y, respectively. Lastly, on a seasonally adjusted basis, the 20 City index increased for the second consecutive month (+0.41% M/M).