The consumer is alive and well in the US as May retail sales jumped 0.5% from the gain of 0.3% in April, which was revised higher from a -0.2% while March was also revised higher. When stripping autos, sales jumped 0.5% from the gain of 0.5% in April which was revised higher from 0.1%.
When April's weak retail sales numbers were released, it was said by pundits that consumer confidence for spending was "shaken!" That theory has been flushed the drain. Consumers spent on a broad array of goods as the strong sales for April and May could boost Q2 Gross Domestic Product. The Goldilocks economy lives on with no signs of a recession in the foreseeable future or for all of 2019.
Applications to purchase new homes surged in May from the previous year due in part to solid consumer confidence as well as a strong labor market. The Mortgage Bankers Association reports that its Builder Application Survey for May showed a 20% increase for mortgage applications for new home purchases, up 0.1% month-over-month from April to May. Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting said, "Declining mortgage rates and more new entry-level supply are good news for the housing market this summer."