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Wednesday, October 28, 2009
ECONOMIC UPDATESLast Week in the
News
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Existing home sales rose 9.4% in September to a seasonally adjusted annual rate of 5.57 million units
from 5.1 million units in August. The increase was largely due to the tax incentive for first-time homebuyers.
According to the ICSC-Goldman Sachs index, retail sales rose 0.2%
in the week ending October 17. On a year-over-year basis, retailers saw sales increase by 2.8%, the best showing in a year.
The producer price index, which tracks wholesale prices, rose 0.6%
in September, following a 1.7% increase in August. For the year, wholesale prices are down 4.8%.
The Commerce Department reported that the combined construction
of new single-family homes and apartments in September increased 0.5% to a seasonally adjusted annual rate of 590,000 units.
That was less than the 610,000 economists had expected.
Initial claims for unemployment benefits rose by 11,000 to 531,000 in the week ending October 17. The figure
was higher than the 515,000 that economists had forecast. The number of people continuing to claim jobless benefits in the
week ending October 10 fell by 98,000 to 5.92 million.
The
index of leading economic indicators — designed to forecast economic activity in the next three to six months —
rose 1% in September after a revised 0.4% gain in August. It was the sixth straight monthly increase and marks the largest
six-month gain in 26 years.
The National Association
of Home Builders / Wells Fargo housing market index fell one point in October to 18. The decrease reflects the soon-to-expire
tax credit for first-time homebuyers that boosted home sales earlier this year. An index reading below 50 indicates negative
sentiment about the housing market.
Upcoming
on the economic calendar are reports on consumer confidence on October 27, new home sales on October 28 and gross domestic
product on October 29.
Provided by:
Judy Haller
Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office:
(703) 590-7132
12:54 pm edt
Tuesday, October 20, 2009
ECONOMIC UPDATESLast Week in the News
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Retail sales decreased 1.5% in September, following a revised 2.2% increase in August. However, excluding
automobiles, retail sales rose 0.5%, more than the 0.2% increase economists had expected. Car sales fell 10.4% from their
August high, as the ‘cash for clunkers’ program expired.
The Commerce Department reported that total business inventory decreased 1.5% in August, following
a 1.1% drop in July. It was the 12th straight monthly decline as retailers, manufacturers and wholesalers sought to cut inventory.
Total business sales rose 1% in August, pulling the stock-to-sales ratio down to 1.33 months to exhaust inventories at the
August sales pace.
The Labor
Department reported consumer prices rose 0.2% in September. For the year, consumer prices are down 1.3%. This gives the Federal
Reserve room to leave interest rates at record-low levels in a further effort to give the economy a boost.
Initial claims for unemployment benefits fell by 10,000 to 514,000 in the week ending October 10. The figure was
lower than the 520,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week
ending October 3 fell by 75,000 to 5.99 million, the fewest since the week ending March 28.
Industrial production at the nation’s
factories, mines and utilities rose 0.7% in September, following an upwardly revised 1.2% increase in August. For the third
quarter, industrial production increased at an annual rate of 5.2%, the largest quarterly gain since the first three months
of 2005. The overall factory-operating rate rose to 70.5% of capacity in September.
The Reuters/University
of Michigan consumer sentiment index for October fell to 69.4 from 73.5 in September. Economists had forecast a reading of
73.3.
Upcoming on the economic calendar are reports on the housing market index on October 19, housing starts on
October 20 and existing home sales on October 23.
Provided by:
Judy Haller
Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
10:11 am edt
Tuesday, October 6, 2009
ECONOMIC UPDATESLast Week in the News
The Commerce Department reported total construction spending rose 0.8% in August.
Economists had expected a decrease of 0.2%. Private residential activity rose 4.7%, posting its best showing since November
1993.
The Standard & Poor’s / Case-Shiller 20-city housing price index rose 1.2% in July. It was the biggest gain
since October 2005.
The National Association of Realtors reported that its pending home sales index, a forward-looking
indicator based on signed contracts, rose 6.4% to 103.8 in August, following a 3.2% increase to 97.6 in July. It was the seventh
consecutive monthly increase and the highest reading since March 2007.
The Conference Board reported that its consumer confidence
index fell to 53.1 in September from a revised 54.5 in August. Economists had expected an increase to 57. The index was benchmarked
at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence. The Commerce Department reported that
consumer spending rose 1.3% in August, the largest increase since October 2001. Economists had anticipated an increase of
1.1%. The reading follows a revised 0.3% increase in July. Personal income rose 0.2% in August, the same as in July.
Initial
claims for unemployment benefits rose by 17,000 to 551,000 in the week ending September 26. The figure was higher than the
535,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending September
19 fell by 70,000 to 6.09 million.
In the third quarter of 2009, the Dow Jones industrial average rose 15%, its biggest
gain since the fourth quarter of 1998.
Upcoming on the economic calendar are reports on consumer credit on October 7
and wholesale trade on October 8.
Provided by:
Judy Haller
Senior Loan Officer
Prospect
Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office:
(703) 590-7132
12:37 pm edt
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