ECONOMIC UPDATES

Last Week in the News

The trade deficit increased 15.1% to $50.2 billion in May from a revised $43.6 billion in April. Exports fell 0.5% to $174.9 billion. Imports increased 2.6% to $225.1 billion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 8 fell 5.1%. Refinancing applications decreased 6.2%. Purchase volume fell 2.6%.

The producer price index, which tracks wholesale price inflation, fell 0.4% in June after a 0.2% increase in May. For the year, seasonally adjusted wholesale prices are up 7%. Core prices — excluding food and fuel — rose 0.3% in June.

Retail sales rose 0.1% to $387.8 billion in June after a revised 0.1% decrease in May. On a year-over-year basis, retail sales rose 8.1%.

Total business inventories rose 1% in May to $1.514 trillion, up 11.6% from a year ago. Total business sales decreased 0.1% to $1.184 trillion in May, also up 11.6% from a year ago. The total business inventories/sales ratio in May was 1.28.

Consumer prices fell a seasonally adjusted 0.2% in June, following a 0.2% increase in May. For the year, seasonally adjusted consumer prices are up 3.4%.

Industrial production at the nation's factories, mines and utilities rose 0.2% in June. Compared to a year ago, industrial production is up 3.4%. Capacity utilization remained unchanged at 76.7% in June.

Initial claims for unemployment benefits fell by 22,000 to 405,000 for the week ending July 9. Continuing claims for the week ending July 2 rose by 15,000 to 3.7 million.

Upcoming on the economic calendar are reports on the housing market index on July 18, housing starts on July 19 and existing home sales on July 20.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132