Two-fer Tuesday: Home sales tick up, small business sentiment sours
SPY•U.S. existing home sales rose 1.5% in September to a 3.99 million annualized rate, while the NFIB Optimism Index fell 0.8 points to 97.9. Small business owners cited rising costs, interest rates and difficulty finding qualified workers.
1. Home sales rise
Sales of previously owned U.S. homes increased 1.5% in September to a seasonally adjusted annualized rate of 3.99 million, 40,000 above consensus, after August's revised 3.2% decline. Single-family sales rose 2.0%, while condo and co-op sales fell 2.8%. Homes on the market increased 1.9%, and supply remained at 4.8 months at September's sales pace.
2. Small business mood sours
The NFIB Optimism Index fell 0.8 points to 97.9, its seventh monthly decline in the past 12 months and just below its 51-year average of 98. The uncertainty index rose one point to 90, compared with a historical average of 68; owners identified difficulty finding qualified workers as their leading problem for a third straight month.
3. Price concerns increase
NFIB respondents reported increased inflation concerns and plans to raise prices, while expectations for near-term business conditions weakened. Pantheon Macroeconomics' Oliver Allen questioned the survey's reliability, noting that 411 companies responded in September, a response rate of 8.2%. Oxford Economics' Sara Godfrey said the survey pointed to renewed price pressure on small firms.
