Economic Updates

Last Week in the News

On Monday, August 3, the Commerce Department reported total construction spending rose 0.3% in June to $965.7 billion. Economists had expected a 0.5% decline. Meanwhile, construction spending in May was revised slightly upward to a 0.8% decline.

The Institute for Supply Management reported the monthly index of manufacturing activity rose to 48.9 in July from 44.8 in June. Though any reading below 50 signals contraction, it was the seventh consecutive monthly increase from a record low of 32.9 in December.

The Commerce Department reported that consumer spending rose 0.4% in June after a revised 0.1% increase in May. Personal income fell 1.3% in June after jumping a revised 1.3% in May.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, jumped 3.6% to 94.6 in June from an upwardly revised 91.3 in May. It was the fifth consecutive monthly increase after the index hit a record low in January.

The Institute for Supply Management reported the monthly index of non-manufacturing activity fell slightly in July to 46.4 from 47 in June. Economists had expected a reading of 48. Figures below 50 indicate contraction.

The Commerce Department reported factory orders rose 0.4% in June, after a revised 1.1% increase in May. It was the third consecutive month of growth. Economists had expected a 1% drop.

Initial claims for unemployment benefits fell by 38,000 to 550,000 in the week ending August 1. The figure was much lower than the 580,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending July 25 increased by 69,000 to 6.31 million.

Upcoming on the economic calendar are reports on wholesale trade on August 11, retail sales on August 13 and consumer sentiment on August 14.

Judy Haller