Economic Update 07.13.09
On Monday, July 6, the Institute for Supply Management reported the monthly index of non-manufacturing activity rose in June to 47 from 44 in May. Economists had expected a reading of 45.5. Figures below 50 indicate contraction. However, it was the best showing since September 2008 when the index was at 50. Export orders were particularly strong, rising from 47 in May to 53.7 in June.
According to the ICSC-Goldman Sachs index, retail sales rose 0.1% in the week ending July 4. On a year-on-year basis, retailers saw sales increase by 0.5%.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending July 3 increased 10.9% to 493.1. Purchase volume rose 6.7% to 285.6. Refinancing applications jumped 15.2% to 1,707.7.
According to the Federal Reserve, consumer credit debt fell in May by $3.23 billion, an annual rate of 1.54%. Economists had forecast consumer debt would drop $9.5 billion. Total consumer credit debt in May was $2.52 trillion. Meanwhile, the figures for April were upwardly revised. Consumers reduced their borrowing in April by $16.5 billion, an annual rate of 7.8%.
Initial claims for unemployment benefits fell by 52,000 to 565,000 in the week ending July 4 from a revised figure of 617,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending June 27 rose 159,000 to 6.88 million.
The Commerce Department said wholesalers reduced their inventories by 0.8% in May following a revised 1.3% drop in April. Economists had expected a 1% decrease in May. It was the ninth straight monthly decline. Sales at the wholesale level rose 0.2% in May.
