Economic Update, July 9, 2012
Provided courtesy of Marie Richarz, Prospect Mortgage
The Institute for Supply Management reported that the monthly composite index of manufacturing activity fell to 49.7 in June — after a reading of 53.5 in May — indicating that the manufacturing sector contracted for the first time since July 2009. A reading below 50 signals contraction.
Total construction spending rose 0.9% to $830 billion in May from an upwardly revised $822.5 billion in April. Compared to May 2011, construction spending is up 7%.
Retail sales rose 0.2% for the week ending June 30, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.4%.
Factory orders rose 0.7% in May to a seasonally adjusted $469 billion, following a revised 0.7% decrease in April. Excluding the volatile transportation sector, orders increased 0.4% in May.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 29 fell 6.7%. Refinancing applications decreased 8%. Purchase volume rose 1%.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 52.1 in June from 53.7 in May. A reading above 50 signals expansion. It was the 30th straight month of expansion in the services sector.
Initial claims for unemployment benefits for the week ending June 30 fell by 14,000 to 374,000 from an upwardly revised 388,000 the prior week. Continuing claims for the week ending June 23 rose 4,000 to 3.306 million. The monthly unemployment rate remained unchanged at 8.2% in June.
Upcoming on the economic calendar are reports on international trade on July 11 and wholesale inflation on July 13.