ECONOMIC UPDATES

Last Week in the News
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Retail sales rose 0.7% for the week ending October 29, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3%.

The Institute for Supply Management reported that the monthly composite index of manufacturing activity fell to 50.8 in October after a reading of 51.6 in September. A reading above 50 signals expansion. It was the 27th straight month of expansion.

Total construction spending rose 0.2% to $787.2 billion in September, following an upwardly revised 1.6% increase in August. Economists had anticipated an increase of 0.3% in September.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 28 rose 0.2%. Refinancing applications decreased 0.2%. Purchase volume rose 1.8%.

Factory orders rose 0.3% in September to a seasonally adjusted $453.5 billion, following a revised 0.1% increase in August. Excluding the volatile transportation sector, orders rose 1.3% in September.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell slightly to 52.9 in October from 53 in September. A reading above 50 signals expansion. It was the 23rd straight month of expansion in the services sector.

Initial claims for unemployment benefits fell by 9,000 to 397,000 for the week ending October 29. Continuing claims for the week ending October 22 fell by 15,000 to 3.68 million. The monthly unemployment rate fell to 9% in October from 9.1% in September. The Labor Department said the economy added 158,000 jobs in September and revised figures in August to a gain of 104,000 from 57,000.

Upcoming on the economic calendar are reports on wholesale trade on November 9 and international trade on November 10.

Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132