ECONOMIC UPDATES

The producer price index, which tracks wholesale price inflation, rose 0.8% in November after a 0.4% increase in October. Core prices — excluding food and fuel — rose 0.3% in November. For the year, seasonally adjusted wholesale prices are up 3.5%.

Retail sales rose 0.8% in November after an upwardly revised 1.7% increase in October. It was the fifth straight monthly gain. Economists had anticipated retail sales to rise 0.6% in November.

Total business inventories rose 0.7% in October to $1.42 trillion, the highest level since February 2009. Total business sales rose 1.4% to $1.12 trillion in October after a 0.8% increase in September.

Industrial production at the nation's factories, mines and utilities rose 0.4% in November, following a revised 0.2% decrease in October. Compared to a year ago, industrial production is up 5.4%. Capacity utilization rose to 75.2% in November.

The combined construction of new single-family homes and apartments in November rose 3.9% to a seasonally adjusted annual rate of 555,000 units. Single-family starts rose 6.9%. Multifamily starts dropped 9.1%. Applications for new building permits, seen as an indicator of future activity, fell 4% to an annual rate of 530,000 units.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 1.1% in November, the largest gain in eight months.

Initial claims for unemployment benefits fell by 3,000 to 420,000 for the week ending December 11. Continuing claims for the week ending December 4 rose by 22,000 to 4.14 million.

Upcoming on the economic calendar are reports on existing home sales on December 22 and new home sales on December 23.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132