US new home sales see biggest drop since May 2010

US new home sales have seen a massive fall, dropping from 0.455m (revised from 0.497m) to 0.394m in July. Economists had forecast a fall from the unrevised figure to 0.485m.

That puts the new home sales change at -13.4 per cent, from 3.6 per cent (revised from 8.3 per cent). Bad news for June and July, while analysts had predicted a change of just -1.4 per cent in July.