GoldPrice

The manufacturing industry has sunk further as a result of the coronavirus pandemic according to the latest report from the Philadelphia Federal Reserve. The Philadelphia Fed manufacturing index came in at -43.1 vs. - 47.5 expected for May following a reading of -56.6 the month before when the index hit a 40-year low. While business conditions have improved slightly, the pace of recovery is below market expectations.

Homebuilding in the US fell to the lowest rate in 5 years, according to the housing report released on Thursday by the Commerce Department.  April housing starts plummeted 30.2% to a seasonally adjusted annual rate of 891,000 last month, the lowest level since 2015. Annually, housing starts fell 29.7%, with declines seen in all four regions.

The University of Michigan (UoM) consumer sentiment index came in at 73.7, beating expectations of 65 for May and above the 71.8 reading seen in April. Chief economist for the survey, Richard Curtin, echoed commentary supporting the government stimulus packages which have helped cushion some of the damage from the coronavirus pandemic.

New York manufacturing activity in May recovered slightly from the stunning low seen the month before, which was twice as bad as the worst reading during the Great Recession. The index came in at -48.5 in May vs. -78.2 the month before, remaining deeply contracted. The latest reading was still far worse than the historic drop of the Great Recession, marking the second worst month in recorded history, and employment in manufacturing fell further.

Retail sales in the US saw the steepest monthly plunge in history, dropping below expectations for April. Sales fell 16.4% after dropping 8.3% the month before, beating an already dismal forecast of a 12% plunge. The coronavirus lockdown has dealt a major blow to the retail industry, with brick-and-mortar stores closed down nationwide. With tens of millions of Americans out of work, spending on non-essential items has fallen.

Initial jobless claims came in higher than expected in the week ended May 02, with 2.98 million claims vs. 2.5 million expected and 3.1 million the week before. Continuing claims, which measure the number of people receiving claims after an initial week of aid, came in at 22.8 million, 456,000 higher than the week before.