Economic Updates
Last Week in the News The U.S. manufacturing sector grew for the first time since January 2008. The Institute for Supply Management reported the monthly index of manufacturing activity rose to 52.9 in August from 48.9 in July. A reading above 50 signals expansion. The increase was driven by new orders, which was up 9.6 points to 64.9, the highest reading since December 2004.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 3.2% to 97.6 in July from a revised 94.6 in June. It was the sixth consecutive monthly increase and the highest reading since June 2007.
The Commerce Department reported total construction spending fell 0.2% in July to $958 billion. Economists had expected a flat reading. However, construction of homes and apartments rose 2.3%, posting its best showing since September 2008.
The Labor Department said that productivity jumped at an annual rate of 6.6% in the second quarter of 2009. The increase was the biggest quarterly gain in nearly six years. Labor costs fell at an annual rate of 5.9%, the largest drop since the second quarter of 2000.
The Commerce Department reported factory orders rose 1.3% in July, after a revised 0.9% increase in June. It was the fourth consecutive month of growth. Economists had expected a 2.2% increase.
Initial claims for unemployment benefits fell by 4,000 to 570,000 in the week ending August 29. The figure was higher than the 560,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending August 22 rose by 92,000 to 6.23 million.
The Institute for Supply Management reported the monthly index of non-manufacturing activity rose in August to 48.4 from 46.4 in July. Economists had expected a reading of 48. Figures below 50 indicate contraction.
Upcoming on the economic calendar are reports on consumer credit on September 8 and wholesale trade on September 11.
Provided by:
Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 3.2% to 97.6 in July from a revised 94.6 in June. It was the sixth consecutive monthly increase and the highest reading since June 2007.
The Commerce Department reported total construction spending fell 0.2% in July to $958 billion. Economists had expected a flat reading. However, construction of homes and apartments rose 2.3%, posting its best showing since September 2008.
The Labor Department said that productivity jumped at an annual rate of 6.6% in the second quarter of 2009. The increase was the biggest quarterly gain in nearly six years. Labor costs fell at an annual rate of 5.9%, the largest drop since the second quarter of 2000.
The Commerce Department reported factory orders rose 1.3% in July, after a revised 0.9% increase in June. It was the fourth consecutive month of growth. Economists had expected a 2.2% increase.
Initial claims for unemployment benefits fell by 4,000 to 570,000 in the week ending August 29. The figure was higher than the 560,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending August 22 rose by 92,000 to 6.23 million.
The Institute for Supply Management reported the monthly index of non-manufacturing activity rose in August to 48.4 from 46.4 in July. Economists had expected a reading of 48. Figures below 50 indicate contraction.
Upcoming on the economic calendar are reports on consumer credit on September 8 and wholesale trade on September 11.
Provided by:
Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
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