Home Society US industry growth slowing, sale of new homes is considerably down

US industry growth slowing, sale of new homes is considerably down

Business activity in the United States grew less rapidly in May than a month earlier. Research firm Markit reported this on the basis of a provisional figure.

The purchasing managers’ index for the American industry went to a position of 50.6 from 52.6 a month earlier. Economists generally predicted a level of 52.7 for the indicator, which indicates growth at a level higher than 50.

In the services sector there was also a lesser growth compared to a month earlier. Moreover, the 50.9 level was less than the 53.5 that was widely expected. The composite index for May was 50.9 against 53 in April.

Sales of new-build properties in the United States fell sharply in April, following a sharp rise a month earlier. The US Department of Commerce reported this.

Sales fell by 6.9 percent on a monthly basis, to a pace of 673,000 homes measured on an annual basis. Economists generally assumed a decrease of 2.5 percent.

In March, sales went up by a revised 8.1 percent. Earlier an increase of 4.5 percent was reported for that month. With 723,000 homes, sales in March were at the highest level in eleven years.

The sale of new homes is under pressure due to rising house prices, which causes a lack of affordable homes. The average selling price rose by 8.8 percent on an annual basis to more than $ 342,000 last month, the highest level since December 2017. Earlier, it was already apparent that sales of existing homes had also fallen in April.

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