ECONOMIC UPDATES

Last Week in the News

Factory orders rose 0.8% in May to a seasonally adjusted $445.29 billion, following an upwardly revised 0.9% decrease in April. Excluding the volatile transportation sector, orders rose 0.2% in May.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 1 fell 5.2%. Refinancing applications decreased 9.2%. Purchase volume rose 4.8%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 53.3 in June from 54.6 in May. A reading above 50 signals expansion. It was the 18th straight month of expansion in the services sector.

Wholesalers increased their inventories 1.8% to $456.3 billion in May. This followed a 0.8% rise in April. Sales at the wholesale level fell 0.2% in May to $393.7 billion. On a year-over-year basis, sales were 14.5% higher since May 2010.

Retail sales rose 1.5% for the week ending July 2, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.5%.

According to the Federal Reserve, consumer credit debt rose in May by $5.1 billion for a total credit level of $2.43 trillion. Revolving debt, which includes credit cards, rose by $3.4 billion. Non-revolving debt, including loans for cars, rose by $1.7 billion.

Initial claims for unemployment benefits fell by 14,000 to 418,000 for the week ending July 2. Continuing claims for the week ending June 25 fell by 43,000 to 3.7 million. The monthly unemployment rate rose to 9.2% in June from 9.1% in May.

Upcoming on the economic calendar are reports on international trade on July 12, retail sales on July 14 and industrial production on July 15.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132