Weak Private Jobs. Weak Supply Side.
MBA Mortgage Applications (week ended 2/28/2014)
– Purchase Index Week/Week +9.0%. Previous weeks were -4.0%, -6.0%, -5.0%, -4.0%, +2.0%, -4.0%, +12.0%, -1.0%, -4.0%, -6.0%, +1.0%, and -4.0%.
– Refinance Index Week/Week +10.0%. Previous weeks were -11.0%, -3.0%, -0.2%, +3.0%, -2.0%, +10.0%, +11.0%, +5.0%, -8.0%, +2.0%, and -18.0%.
– Composite Index Week/Week +9.4%. Previous weeks were -8.5%, -4.1%, -0.2%, +0.4%, -0.2%, +4.7%, +11.9%,+2.6%, -6.3%, -5.5%, and +1.0%.
Applications recovered some of the losses of the three previous weeks. Year-on-year Purchase Applications are off 19%.
ADP Private Jobs (February 2014)
– ADP Private Jobs +139,000. Previous revised from +175,000 to +127,000 making the net gain from previous 91,000.
This is a weak report.
PMI Services Index (February 2014)
– Level 53.3. Previous was 56.7.
Growth but at a slower pace.
ISM Non-manufacturing Index (February 2014)
– Index level 51.6. Previous was 54.0.
What we see here today may be a result of the demand side not meeting the expectations of the supply side. This should result in a lower “I “(inventory) component for 1stQ2014 GDP. This was expected.