Chicago Purchasing Managers’ Index surprisingly fell significantly

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In the US, there has been a surprising drop in the number of house sales that have not yet been completed. The so-called pending home sales fell by 1.3 percent in April, according to the National Association of Realtors (NAR), the agency in Washington, said in Washington on Wednesday. By contrast, economists had expected an increase of 0.5 percent.

Already in March sales had fallen. The consensus forecast also revised the downward trend. According to this, in March, the index fell slightly faster than the originally reported minus 0.8 percent.

On a yearly basis, the number of sales in April fell by 5.4 per cent. In March, there was an increase of 0.5%. The number of house sales, which have not yet been completed, generally fluctuates strongly.

In the US, the business climate in the Chicago region has deteriorated more than expected in May. The index dropped from 58.3 points in the previous month to 55.2 points, the regional Purchasing Managers stated on Wednesday in Chicago. This is the weakest figure since January. Experts expected an index level of 57.0 points.

The dollar surrendered after the data release. In return, the euro rose to its highest level in just under one week at 1.1242 US dollars.

The indicator had reached the highest level since the beginning of 2015 in the previous month. Values ​​above 50 points indicate a growth in economic activity. Values ​​below indicate shrinkage. However, the indicator was very volatile at the time.

The “Beige Book” economic report from the US central bank is likely to be the focus of the later trading trend. According to Bloomberg news agency, the market participants expect a further interest rate increase in two weeks with an 87% probability.