ECONOMIC UPDATES

Last Week in the News

The trade deficit decreased 2.6% to $45.76 billion in February from $46.97 billion in January. Economists had expected a trade deficit of $44 billion. Exports fell 1.4% to $165.12 billion. Imports decreased 1.7% to $210.88 billion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 8 fell 6.7%. Refinancing applications decreased 7.7%. Purchase volume fell 4.7%.

Retail sales rose 0.4% to $396.3 billion in March after a revised 1.1% increase in February. It was the ninth straight monthly gain. On a year-over-year basis, retail sales rose 7.1%.

Total business inventories rose 0.5% in February to $1.46 trillion, up 9.1% from a year ago. Total business sales increased 0.2% to $1.17 trillion in February, up 10.9% from a year ago.

The producer price index, which tracks wholesale price inflation, rose 0.7% in March after a 1.6% increase in February. Core prices — excluding food and fuel — rose 0.3% in March.

Industrial production at the nation's factories, mines and utilities rose 0.8% in March, following a revised 0.1% increase in February. Compared to a year ago, industrial production is up 5.9%. Capacity utilization was 77.4% in March.

Consumer prices rose a seasonally adjusted 0.5% in March, following a 0.5% increase in February. For the year, seasonally adjusted consumer prices are up 2.7%.

Initial claims for unemployment benefits rose by 27,000 to 412,000 for the week ending April 9. Continuing claims for the week ending April 2 fell by 58,000 to 3.68 million, the lowest since September 2008.

Upcoming on the economic calendar are reports on the housing market index on April 18, housing starts on April 19 and existing home sales on April 20.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132