ECONOMIC UPDATES

The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.9 in October after reaching 54.4 in September. Economists had anticipated a reading of 54.5. A reading above 50 signals expansion. It was the 15th straight month of expansion.

Total construction spending rose 0.5% to $801.7 billion in September, following a revised 0.2% drop in August. Economists had anticipated a drop of 0.5% in September.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 29 fell 5%. Refinancing applications decreased 6.4%. Purchase volume rose 1.4%.

Factory orders rose 2.1% in September to a seasonally adjusted $420 billion. The increase follows a 0.5% drop in August. The increase was largely due to a 15.8% rise in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.4%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity rose to 54.3 in October from 53.2 in September. A reading above 50 signals expansion.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 1.8% in September after a revised 4.4% increase in August. On a year-over-year basis, pending sales are down nearly 25%.

Initial claims for unemployment benefits rose by 20,000 to 457,000 for the week ending October 30. Continuing claims for the week ending October 23 fell by 42,000 to 4.34 million, the lowest level since the recovery began. Non-farm payroll employment increased by 151,000 in October, a reading much higher than the 60,000 anticipated.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132