Manufacturing data shows solid growth, but evidence of tariff impacts have started to emerge. The U.S. purchasing managers' index (PMI) data was 55.5. However, average prices charged grew at the fastest pace on record amid increases in input costs, as survey respondents noted higher raw material and fuel costs. Suppliers' delivery times were also the longest on record amid low inventory and capacity constraints, showing that supply chain constraints are causing significant disruption. While manufacturing growth has been strong this year, the surge in prices and supply chain disruptions could curb further economic activity. (LPL)
The Commerce Department reports new home sales dropped 5.3 percent month, the lowest level since October 2017. The median new house price fell 4.2 percent to $302,100 in June from a year ago. There were 301,000 new homes on the market in June, up 1.7 percent from May. Supply is just over half of what it was at the peak of the housing market boom in 2006. Nearly two-thirds of the houses sold last month were either under construction or yet to be built.
The Mortgage Bankers Association says volume was 12.6 percent lower than a year ago. Mortgage applications to purchase a home is 2 percent higher than last year.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.