Tuesday, August 25, 2015

Wednesday: Durable Goods

by Bill McBride on 8/25/2015 08:46:00 PM

• At 7:00 AM ET, the Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 8:30 AM, Durable Goods Orders for July from the Census Bureau. The consensus is for a 0.4% decrease in durable goods orders.

This is a leading indicator for industry production, from the ACC: Chemical Activity Barometer Follows Global Markets Downward

The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), dropped 0.3 percent in August, a marked deceleration of activity from second quarter performance. The declined follows a 0.1 percent gain in July and 0.5 percent gain in both May and June. Data is measured on a three-month moving average (3MMA). Accounting for adjustments, the CAB remains up 1.8 percent over this time last year, also a deceleration of annual growth as compared to this time last year when the barometer logged a 4.2 percent annual gain over 2013.
“Chemical, other equity, and product prices all suffered greatly in our latest reading of the Chemical Activity Barometer,” said ACC Chief Economist Kevin Swift. “There continued to be upward momentum in plastic resins for both consumer applications and light vehicles, but we also continue to see declines in oilfield chemicals and U.S. exports overall, largely as a result of softer oil prices and a strong U.S. dollar,” Swift said. Despite these modest headwinds, the Chemical Activity Barometer is still signaling slow gains in business activity into the early part of 2016.