Housing Market Index

8/3/2019 Housing Market Index

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Housing Market Index

DefinitionThe National Association of Home Builders produces a housing market index based on a survey in whichrespondents from this organization are asked to rate the general economy and housing marketconditions. The housing market index is a weighted average of separate diffusion indexes: present sales

of new homes, sale of new homes expected in the next six months, and traffic of prospective buyers innew homes.

Why Investors CareThis report provides a gauge of not only the demand for housing, but the economic momentum. Peoplehave to be feeling pretty comfortable and confident in their own financial position to buy a house.Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, andtherefore across the markets and your investments. By tracking economic data such as the housingmarket index, investors can gain specific investment ideas as well as broad guidance for managing aportfolio. Whether the housing market index reflects new home sales or home resales, once a home issold, it generates revenues for the realtor and the builder. It brings a myriad of consumption opportunitiesfor the buyer. Refrigerators, washers, dryers and furniture are just a few items home buyers mightpurchase. The economic "ripple effect" can be substantial especially when you think a hundred thousandnew households around the country are doing this every month. Since the economic backdrop is the mostpervasive influence on financial markets, home sales have a direct bearing on stocks, bonds andcommodities. In a more specific sense, trends in the existing home sales data carry valuable clues for thestocks of home builders, mortgage lenders and home furnishings companies.

FrequencyMonthly.

SourceNational Association of Home Builders/Wells Fargo.

AvailabilityMid-month, one day prior to the housing starts report.

CoverageData are for the same month as the release. June data are released in mid-June.

RevisionsNo.

Important Legal Notice: Econoday has attempted to verify the information contained in thiscalendar. However, any aspect of such info may change without notice. Econoday does notprovide investment advice, and does not represent that any of the information or related analysisis accurate or complete at any time. Legal Notices 1998-2011 Econoday, Inc. All RightsReserved.

Actual Data Source: Haver Analytics | Consensus Data Sources: Market News International &Thomson Financial

Econoday Suggestion Box: We welcome your ideas on how we can serve you better.

Housing Market Index

Released on 1/18/2011 10:00:00 AM For Jan, 2011


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Prior Actual

Housing Market Index 16 16

HighlightsHome builders report no improvement in activity this month. The NAHB/Wells Fargo housing market indexis unchanged at a depressed level of 16. Details show no change in current sales and no change inexpectations of futures sales. A small positive is a small improvement in buyer traffic. The National

Association of Home Builders warns that construction financing remains extremely limited and theycontinue to report difficulties surrounding the accuracy of appraisals. Other housing data this weekinclude mortgage applications tomorrow and, in a big report this week, existing home sales on Thursday.

DefinitionThe National Association of Home Builders produces a housing market index based on a survey in whichrespondents from this organization are asked to rate the general economy and housing marketconditions. The housing market index is a weighted average of separate diffusion indexes: present salesof new homes, sale of new homes expected in the next six months, and traffic of prospective buyers innew homes. Why Investors Care

2011 Release Schedule

Released On: 1/18 2/15 3/15 4/18 5/16 6/15 7/18 8/15 9/19 10/18 11/16 12/19

Released For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Import and Export Prices

DefinitionImport price indexes are compiled for the prices of goods that are bought in the United States butproduced abroad and export price indexes are developed for the prices of goods sold abroad butproduced domestically. These prices indicate inflationary trends in internationally traded products.

Why Investors CareChanges in import and export prices are a valuable gauge of inflation here and abroad. Furthermore, thedata can directly impact the financial markets such as bonds and the dollar. The bond market is

especially sensitive to the risk of importing inflation because it erodes the value of the principal (theoriginal investment) which is paid back when the bond matures. It also decreases the value of the steadystream of interest rate payments on this type of security. Inflation leads to higher interest rates and that'sbad news for stocks, as well. By monitoring inflation gauges such as import prices, investors can keep aneye on this menace to their portfolios.

FrequencyMonthly.


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SourceBureau of Labor Statistics (BLS), U.S. Department of Labor.

AvailabilityMid- month.

CoverageData are for the previous month. Data for June are released in July.

RevisionsNo.




Import and Export Prices

Released on 10/14/2011 8:30:00 AM For Sep, 2011

Prior Consensus Consensus Range

Import Prices - M/M change -0.4 % -0.5 % -1.2 % to 0.4 %

Market Consensus Before AnnouncementImport prices in July rose on higher petroleum costs with a 0.3 percent gain versus June's 0.6 percentdecline in a month when petroleum prices fell. Prices for imported petroleum products rose 0.6 percent inJuly, following a 2.2 percent drop the month before. Excluding petroleum, import prices rose 0.2 percent,following a 0.1 percent rise in June.

DefinitionImport price indexes are compiled for the prices of goods that are bought in the United States butproduced abroad and export price indexes are developed for the prices of goods sold abroad butproduced domestically. These prices indicate inflationary trends in internationally traded products.WhyInvestors Care


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Yearly changes in import andexport prices reveal long term

trends in inflation for tradablegoods.

Data Source: Haver Analytics

ISM Non-Mfg Index

DefinitionThe non-manufacturing ISM surveys more than 375 firms from numerous sectors across the UnitedStates, including agriculture, mining, construction, transportation, communications, wholesale trade and

retail trade. The non-manufacturing composite index has four equally weighted components: businessactivity (closely related to a production index), new orders, employment, and supplier deliveries (alsoknown as vendor performance). The first three components are seasonally adjusted but the supplierdeliveries index does not have statistically significant seasonality and is not adjusted. For the compositeindex, a reading above 50 percent indicates that the non-manufacturing economy is generally expanding;below 50 percent indicates that it is generally declining. The supplier deliveries component index requiresextra explanation. A reading above 50 percent indicates slower deliveries and below 50 percent indicatesfaster deliveries. However, slower deliveries are a plus for the economyindicating demand is up andvendors are not able to fill orders as quickly.


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Why Investors CareInvestors need to keep their fingers on the pulse of the economy because it dictates how various types ofinvestments will perform. By tracking economic data like the ISM non-manufacturing survey's compositeindex, investors will know what the economic backdrop is for the various markets. The non-manufacturingcomposite index has four equally weighted components: business activity, new orders, employment, andsupplier deliveries. The ISM did not begin publishing the composite index until the release for January

2008. Prior to 2008, markets focused on the business activity index. The stock market likes to see healthyeconomic growth because that translates to higher corporate profits. The bond market prefers less rapidgrowth and is extremely sensitive to whether the economy is growing too quickly-and causing potentialinflationary pressures. While the ISM manufacturing index has a long history that dates to the 1940s, thisrelatively new report goes back to 1998.

FrequencyMonthly.

SourceInstitute for Supply Management.

AvailabilityThe third business day of the month.

CoverageData are for the previous month. Data for June are released in July.

RevisionsNo.




ISM Non-Mfg Index

Released on 10/5/2011 10:00:00 AM For Sep, 2011

Prior Consensus Consensus Range Actual

Composite Index - Level 53.3 52.9 51.3 to 54.2 53.0


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HighlightsRates of monthly growth in orders are accelerating though employment is now contracting in what is amixed report on the non-manufacturing sector for September. New orders rose a very solid 3.7 points to56.5, over 50 to indicate monthly growth and well above August to indicate an accelerating rate ofmonthly growth. Backlog orders are now over 50, up five points to 52.5 to end three months ofcontraction. These are solid readings that point to rising overall strength for the sector in the months

ahead.

Business activity, that is production, rose 1.4 points to a 57.1 level that shows the strongest rate ofmonthly growth in six months. Yet despite the rise in output, non-manufacturers are not hiring with theemployment index falling 2.9 points to a sub-50 reading of 48.7 that indicates contraction in the sample'sworkforce. This is the first contraction in employment since August last year.

The report's overall composite index is 53.0, which is right at the Econoday consensus for 52.9. Thoughthe employment reading in this report offers a negative signal for Friday's monthly employment data,order readings are positive leading indications. The Dow is moving to positive ground following this report.

Market Consensus Before Announcement

The composite index from the ISM non-manufacturing survey in August edged 0.6 points higher to 53.3.The reading was above 50 and indicates monthly growth in activity, albeit modest growth. New ordersshowed a slight but welcome monthly acceleration to 52.8 for a 1.1 point gain from July.

DefinitionThe non-manufacturing ISM surveys more than 375 firms from numerous sectors across the UnitedStates, including agriculture, mining, construction, transportation, communications, wholesale trade andretail trade. The non-manufacturing composite index has four equally weighted components: businessactivity (closely related to a production index), new orders, employment, and supplier deliveries (alsoknown as vendor performance). The first three components are seasonally adjusted but the supplierdeliveries index does not have statistically significant seasonality and is not adjusted. For the compositeindex, a reading above 50 percent indicates that the non-manufacturing economy is generally expanding;below 50 percent indicates that it is generally declining. The supplier deliveries component index requires

extra explanation. A reading above 50 percent indicates slower deliveries and below 50 percent indicatesfaster deliveries. However, slower deliveries are a plus for the economyindicating demand is up andvendors are not able to fill orders as quickly. Why Investors Care


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The ISM non-manufacturingsurvey does not compile a

composite index like itsmanufacturing cousin. The

business activity index, which isactually akin to the production

index in the manufacturingsurvey, is widely followed as the

key figure from this survey.

Data Source: Haver Analytics

Documents

Housing Market Index