US: Chicago PMI and pending home sales in focus – Nomura

Based on relevant components of the Empire State and Philly Fed business surveys, analysts at Nomura expect the Chicago PMI to fall slightly by 0.7pp to 65.0 in February.

Key Quotes

“This forecast would be consistent with continued expansion in business activity, albeit at a slightly slower pace than in January. The Philly Fed and Empire State surveys’ headline business conditions indices rose modestly in the month pointing to continued optimism among businesses.”

“Pending home sales: Pending home sales rose decently by 0.5% m-o-m in December following a 0.3% increase in November. Pending home sales, which track contract signings on previously-owned home for sale, suggest modest boost to existing home sales in coming months. However, low inventories of home for sale continue to pose downside risks to sales.”