Economic Updates

The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 55.5 in July after reaching 56.2 in June. A reading above 50 signals expansion. It was the 12th straight month of expansion.

Total construction spending rose 0.1% to $836 billion in June, following a downwardly revised $834.8 billion in May. Economists had anticipated a drop of 0.8% in June.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 2.6% in June after a 30% decrease in May. On a year-over-year basis, pending home sales are down 18.6%.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 30 increased 1.3%. Refinancing applications rose 1.3%. Purchase volume rose 1.5%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 54.3 in July from 53.8 in June. A reading above 50 signals expansion. It was the seventh consecutive month of growth. Economists had anticipated a reading of 53.

Initial claims for unemployment benefits rose by 19,000 to 479,000 for the week ending July 31. Continuing claims for the week ending July 24 fell by 34,000 to 4.54 million. The unemployment rate remained unchanged at 9.5% in July.

Upcoming on the economic calendar are reports on wholesale trade on August 10, international trade on August 11 and retail sales on August 13.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192
Office: (703) 590-7132