Economic Updates

Last Week in the News

The Commerce Department reported the trade deficit grew 9.7% to $36.4 billion in November from a revised $33.2 billion in October. Economists had expected the trade deficit to widen to $34.5 billion. Exports increased 0.9%, the seventh consecutive monthly gain. The growth in U.S. exports is an indication the global economy is beginning to rebound.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending January 8 rose 14% to 528.1. Purchase volume increased 0.8% to 213.7. Refinancing applications jumped 21.8% to 2,407.2.

Retail sales unexpectedly fell 0.3% in December, following an upwardly revised 1.8% increase in November. Economists had anticipated retail sales to rise 0.4%. For the year, sales fell 6.2%, the largest decline since record keeping began in 1992.

Initial claims for unemployment benefits rose by 11,000 to 444,000 in the week ending January 9. Continuing claims for the week ending January 2 fell by 211,000 to 4.596 million.

The Labor Department reported consumer prices rose 0.1% in December. In 2009, consumer prices increased 2.7% after rising 0.1% in 2008.

Industrial production at the nation’s factories, mines and utilities increased 0.6% in December, following a revised 0.6% gain in November. The overall factory-operating rate rose to 72% of capacity in December from 71.5% in November.

Upcoming on the economic calendar are reports on the housing market index on January 19, housing starts on January 20, and the index of leading economic indicators on January 21.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132