The data continues to reflect a strong rebound putting pressure on market interest rates.
Another week of very strong economic data. The ISM Index remains above 58 when only a reading above 50 is required to signal future growth in manufacturing. This was confirmed with a very strong Durable Goods order report, boosted by a surge in aircraft orders. In total, orders were up 3.4% for the month and a solid 0.5% excluding aircraft and defense spending. New home sales increased 4.3% for the month following the 5.5% increase reported for December. The surge in housing demand drove the average price of a new home up by 3.6% and is up 6.5% YOY. Finally, Personal Income jumped by 10.0% for the highest monthly gain since the first stimulus program injected liquidity.
PROBANK AUSTIN ADVISOR - MARCH 1, 2021