Economic Update - Charlotte 6-8-09
On Monday, June 1, the Commerce Department reported total construction spending unexpectedly rose 0.8% in April. Economists had expected a 1.2% decline. It was the biggest gain since August 2008 and marked the second straight month that construction spending has risen after a 0.4% increase in March.
The Institute for Supply Management reported the monthly index of manufacturing activity rose in May to 42.8 from 40.1 in April. Though any reading below 50 signals contraction, it was the fifth consecutive monthly increase from a record low of 32.9 in December. Most importantly, the index of new orders rose to 51.1. This is the first expansion since November 2007, one month before the recession began.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6.7% to 90.3 in April from 84.6 in March. It was the biggest monthly jump since October 2001 and the third consecutive monthly increase after the index hit a record low in January. The reading is 3.2% above the April 2008 level.
The Commerce Department reported factory orders rose 0.7% in April, after a revised 0.9% drop in March. The report reflected increased demand for automobiles, electrical equipment and construction machinery.
The Institute for Supply Management reported the monthly index of non-manufacturing activity rose in May to 44 from 43.7 in April. Economists had expected a reading of 42. Figures below 50 indicate contraction.
Initial claims for unemployment benefits fell by 4,000 to 621,000 in the week ending May 30 from a revised figure of 625,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending May 23 fell to 6.74 million. It was the first decrease in almost five months of uninterrupted weekly gains.
