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On this holiday, we gather to give thanks. And what is it that we're most thankful for? According to a survey of 25,000 respondents, approximately: 45.2% were thankful for the people in their lives, namely friends, family and spouses. 19.3% were thankful for life experiences, health and inner strength. 19.2% were thankful for their spirituality and religion. 7.5% were thankful for their money and jobs, which ranked ninth on the list. Speaking of people to be thankful for, if you enjoy Thanksgiving, you should be thankful for Sarah Josepha Hale. She started a campaign in 1827 to make Thanksgiving a national holiday. Her efforts included letters written to five presidents. Lincoln responded immediately with his 1863 proclamation that Thanksgiving be observed as a national holiday. On the first Thanksgiving in the autumn of 1621, the Pilgrims had much to be thankful for - only half of those who sailed on the Mayflower survived to celebrate Thanksgiving.

In the News

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Factory orders rose $8.1 billion, or 1.7%, in September to a seasonally adjusted $490.8 billion. This follows a 0.1% decrease in August. Excluding the volatile transportation sector, orders decreased 0.2% in September.

Non-manufacturing activity rose to 55.4 in October from 54.4 in September. A reading above 50 signals expansion. It was the 46th straight month of expansion in the services sector.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending November 1 fell 7%. Purchase volume fell 5%. Refinancing applications decreased 8%.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.7% in September, following an identical 0.7% increase in August.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2.8% in the third quarter of 2013. This follows a 2.5% pace of growth in the second quarter of 2013.

According to the Federal Reserve, monthly consumer credit debt rose $13.7 billion in September for a total credit debt level of $3.051 trillion. Revolving debt, which includes credit cards, decreased $1.2 billion to $846.9 billion. Non-revolving debt, including loans for cars, rose $15.8 billion to $2.204 trillion.

Initial claims for unemployment benefits for the week ending November 2 fell by 9,000 to 336,000. Continuing claims for the week ending October 26 rose by 4,000 to 2.868 million. The less volatile four-week average of claims for unemployment benefits was 348,250. The unemployment rate rose to 7.3% in October from 7.2% in September. Employers added 204,000 jobs in October.

Upcoming on the economic calendar are reports on international trade on November 14 and industrial production on November 15.

In the News The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 2.2% in June after a 2.5% increase in May. On a year-over-year basis, when compared with June 2012, prices rose 12.1%. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 23 fell 2.5%. Purchase volume rose 2%. Refinancing applications decreased 5%. Pending home sales, a forward-looking indicator based on signed contracts, fell 1.3% in July. On a year-over-year basis, pending home sales were 6.7% higher than July 2012. Orders for durable goods — items expected to last three or more years — decreased $17.8 billion, or 7.3%, to $226.6 billion in July. This follows a 3.9% increase in June. Excluding volatile transportation-related goods, July orders posted a monthly decrease of 0.6%. Retail sales rose 0.2% for the week ending August 24, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.9%. The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at a revised annual rate of 2.5% in the second quarter of 2013. This follows a 1.1% pace of growth in the first quarter of 2013. Initial claims for unemployment benefits for the week ending August 24 fell by 6,000 to 331,000. Continuing claims for the week ending August 17 fell by 14,000 to 2.989 million. The less volatile four-week average of claims for unemployment benefits was 331,250. Upcoming on the economic calendar are reports on construction spending on September 3, international trade on September 4 and factory orders on September 5.

In the News

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Retail sales rose 0.6% to $421.1 billion in May. This follows a 0.1% increase in April. Compared to May 2012, retail sales have increased 4.3%.

Wholesalers increased their inventories 0.2% to $504.8 billion in April. Sales at the wholesale level rose 0.5% to $416.6 billion in April. On a year-over-year basis, sales were 0.7% higher than April 2012. The seasonally adjusted wholesale inventories/sales ratio in April was 1.21.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 7 rose 5%. Purchase volume rose 5%. Refinancing applications also increased 5%.

The Reuters/University of Michigan consumer sentiment index for June's preliminary reading fell to 82.7 from 84.5 in May, which was the highest reading since July 2007.

Industrial production at the nation's factories, mines and utilities was unchanged in May after a 0.4% decrease in April. Compared to May 2012, industrial production has increased 1.6%. Capacity utilization fell to 77.6% in May from 77.7% in April.

The producer price index, which tracks wholesale price inflation, rose 0.5% in May, following a 0.7% decrease in April. On a year-over-year basis, wholesale prices were up 1.7% in May. Core prices — excluding food and fuel — rose 0.1% in May.

Initial claims for unemployment benefits for the week ending June 8 fell by 12,000 to 334,000. Continuing claims for the week ending June 1 rose by 2,000 to 2.952 million. The less volatile four-week average of claims for unemployment benefits was 345,250.

Upcoming on the economic calendar are reports on the housing market index on June 17, housing starts on June 18 and existing home sales on June 20.

Obama Administration Releases May Housing Scorecard

​Quarterly Servicer Assessments Show Mortgage Servicers Demonstrate Continued Improvement in Implementation of the Making Home Affordable Program, Now Extended through 2015

 

WASHINGTON- The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the May edition of the Obama Administration's Housing Scorecard – a comprehensive report on the nation’s housing market. Data continue to show important progress across many key indicators— as the annual home price increase is the highest since the housing bubble burst in mid-2006 and purchases of new and existing homes remain strong—although officials caution that a full housing recovery will take more time. The Housing Scorecard is available online at www.hud.gov/scorecard.

“As the May housing scorecard indicates, the Obama Administration’s policies and actions over the last four years to speed housing recovery are continuing to show important signs of progress,” said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. “In the first quarter of 2013, homeowners’ equity grew by more than $815 billion, reaching its highest level since the first quarter of 2008. Despite the positive news, we have important work ahead since there are so many families and individuals still ‘underwater’ with mortgage balances higher than their home’s value.”

Included in this month’s Making Home Affordable Program Report are detailed assessments for the largest mortgage servicers participating in the program evaluating their performance for the first quarter of 2013. These Servicer Assessments – first issued in June 2011 and published quarterly – show that servicers continue to focus attention on areas identified in previous program reviews, resulting in improved program implementation and better outcomes for homeowners. Last week, the Administration announced an extension of the Making Home Affordable Program – which includes the Home Affordable Modification Program or HAMP – through December 31, 2015. The Making Home Affordable Program is a critical part of the Administration’s efforts to fuel the housing recovery and help homeowners avoid foreclosure.

“We have kept the pressure on the mortgage industry to step up its efforts, which has helped millions of families access relief in a historic housing crisis,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “Making Home Affordable provides standards and accountability for the mortgage industry that will now help additional homeowners avoid foreclosure through 2015.”

Since inception of the Making Home Affordable Program, Treasury has required participating servicers to take specific actions to improve their processes through ongoing program reviews. The quarterly Servicer Assessments summarize performance in three categories of program implementation: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. Results for the first quarter of 2013 show that, although servicer performance can fluctuate from quarter to quarter, servicers are demonstrating continued improvement in program implementation, including:

 

The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 1.1% in March after a 1.3% increase in February. On a year-over-year basis, when compared with March 2012, prices rose 10.9%, the first double-digit annual gain since May 2006.

The consumer confidence index reached a five-year high at 76.2 in May from a revised 69 in April. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

Pending home sales, a forward-looking indicator based on signed contracts, rose 0.3% in April after a 1.5% increase in March. On a year-over-year basis, pending home sales were 10.3% higher than April 2012.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 24 fell 8.8%. Purchase volume fell 3%. Refinancing applications decreased 12%.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at a revised annual rate of 2.4% in the first quarter of 2013, compared to the initial estimate of a 2.5% increase.

Retail sales fell 0.9% for the week ending May 25, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.8%.

Initial claims for unemployment benefits for the week ending May 25 rose by 10,000 to 354,000. Continuing claims for the week ending May 18 rose by 63,000 to 2.986 million. The less volatile four-week average of claims for unemployment benefits was 347,250.

Upcoming on the economic calendar are reports on construction spending on June 3 and factory orders on June 5.

In the News   Retail sales rose 0.1% to $419 billion in April. This follows a 0.5% decrease in March. Compared to April 2012, retail sales have increased 3.7%. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 10 fell 7.3%. Refinancing applications decreased 8%. Purchase volume fell 4%. The producer price index, which tracks wholesale price inflation, fell 0.7% in April, following a 0.6% decrease in March. On a year-over-year basis, wholesale prices were up 0.6% in April. Core prices — excluding food and fuel — rose 0.1% in April. Industrial production at the nation's factories, mines and utilities fell 0.5% in April after a 0.3% increase in March. Compared to April 2012, industrial production has increased 1.9%. Capacity utilization fell to 77.8% in April from 78.3% in March. The National Association of Home Builders/Wells Fargo monthly housing market index rose three points in May to 44. An index reading below 50 indicates negative sentiment about the housing market. Consumer prices fell 0.4% in April, following a 0.2% decrease in March. Compared to April 2012, consumer prices have risen 1.1%. Consumer prices at the core rate — excluding volatile food and energy prices — were up 0.1% in April. The combined construction of new single-family homes and apartments in April fell 16.5% to a seasonally adjusted annual rate of 853,000 units. Single-family starts decreased 2.1%. Volatile multifamily starts fell 38.9%. Compared to the previous year, housing starts were up 13.1% in April. Applications for new building permits, seen as an indicator of future activity, rose 14.3% to an annual rate of 1,017,000 units. Initial claims for unemployment benefits for the week ending May 11 rose by 32,000 to 360,000. Continuing claims for the week ending May 4 fell by 4,000 to 3.009 million. The less volatile four-week average of claims for unemployment benefits was 339,250. Upcoming on the economic calendar are reports on existing home sales on May 22 and new home sales on May 23.

In the News Pending home sales, a forward-looking indicator based on signed contracts, rose 1.5% in March after a revised 1% decrease in February. On a year-over-year basis, pending home sales were 7% higher than March 2012. The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 0.3% in February after a 0.1% increase in January. On a year-over-year basis, when compared with February 2012, prices rose 9.3%, the largest annual gain since May 2006. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 26 rose 1.8%. Purchase volume fell 1.4%. Refinancing applications increased 3%. Manufacturing activity fell to 50.7 in April after a reading of 51.3 in March. A reading above 50 signals expansion. This was the fifth consecutive month of expansion. Total construction spending fell 1.7% to $856.7 billion in March, following a 1.5% increase in February. Compared to March 2012, construction spending has risen 4.8%. The trade deficit decreased to $38.8 billion in March from $43.6 billion in February. Exports fell $1.7 billion to $184.3 billion. Imports decreased $6.5 billion to $223.1 billion. Factory orders fell $19.5 billion, or 4%, in March to a seasonally adjusted $467.3 billion. This follows a 1.9% increase in February. Excluding the volatile transportation sector, orders decreased 2% in March. Non-manufacturing activity fell to 53.1 in April from 54.4 in March. A reading above 50 signals expansion. It was the 40th straight month of expansion in the services sector. Initial claims for unemployment benefits for the week ending April 27 fell by 18,000 to 324,000. Continuing claims for the week ending April 20 rose by 12,000 to 3.02 million. The less volatile four-week average of claims for unemployment benefits was 342,250. The unemployment rate decreased from 7.6% in March to 7.5% in April, the lowest rate since December 2008. Employers added 165,000 jobs in April. Upcoming on the economic calendar are reports on consumer credit on May 7 and wholesale trade on May 9.

In the News Retail sales fell 0.4% to $418.3 billion in March. This follows a 1% increase in February. Compared to March 2012, retail sales have increased 2.8%. Wholesalers decreased their inventories 0.3% to $501.4 billion in February. Sales at the wholesale level rose 1.7% to $422.5 billion in February. On a year-over-year basis, sales were 3.7% higher than February 2012. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 5 rose 4.5%. Purchase volume fell 1%. Refinancing applications increased 6%. Import prices fell 0.5% in March, following a 0.6% increase in February. On a year-over-year basis, import prices were down 2.7% in March. Export prices fell 0.4% in March, following a 0.7% increase in February. Compared to a year ago, export prices were up 0.3% in March. The producer price index, which tracks wholesale price inflation, fell 0.6% in March, following a 0.2% decrease in February. On a year-over-year basis, wholesale prices were up 1.1% in March. Core prices — excluding food and fuel — rose 0.2% in March. Total business inventories rose 0.1% in February to $1.642 trillion, up 4.9% from a year ago. Total business sales increased 1.2% to $1.268 trillion in February, up 3.7% from a year ago. The total business inventories/sales ratio in February was 1.28. Initial claims for unemployment benefits for the week ending April 6 fell by 42,000 to 346,000. Continuing claims for the week ending March 30 fell by 12,000 to 3.08 million. The less volatile four-week average of claims for unemployment benefits was 358,000. Upcoming on the economic calendar are reports on the housing market index on April 15, housing starts on April 16 and the leading economic indicators on April 18.

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Total construction spending rose 1.2% to $885.1 billion in February, following a 2.1% decrease in January. Compared to February 2012, construction spending has risen 7.9%.

Retail sales rose 4.7% for the week ending March 30, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.9%.

Manufacturing activity fell to 51.3 in March after a reading of 54.2 in February. A reading above 50 signals expansion. This was the fourth consecutive month of expansion.

Factory orders rose $14.5 billion, or 3%, in February to a seasonally adjusted $492 billion. This follows a 1% decrease in January. Excluding the volatile transportation sector, orders increased 0.3% in February.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 29 fell 4%. Purchase volume rose 1%. Refinancing applications decreased 6%.

Non-manufacturing activity fell to 54.4 in March from 56 in February. A reading above 50 signals expansion. It was the 39th straight month of expansion in the services sector.

The trade deficit decreased to $43 billion in February from $44.5 billion in January. Exports rose $1.6 billion to $186 billion. Imports increased $0.1 billion to $228.9 billion.

Initial claims for unemployment benefits for the week ending March 30 rose by 28,000 to 385,000. Continuing claims for the week ending March 23 fell by 8,000 to 3.06 million. The less volatile four-week average of claims for unemployment benefits was 354,250. The unemployment rate decreased to 7.6% in March from 7.7% in February. Employers added 88,000 jobs in March.

Upcoming on the economic calendar are reports on wholesale trade on April 9 and retail sales on April 12.

Housing Market Snapshot

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We continue to see substantial improvements in the housing market, particularly when you look at year-over-year comparisons.

According to the most recent data, housing starts were at a seasonally adjusted annual rate of 917,000 in February, up 27.7% since February 2012. New housing permits were at 946,000, which is 33.8% above the February 2012 level of 707,000. New home sales surged 15.6% in January to a seasonally adjusted annual rate of 437,000 units — the highest level since July 2008. On a year-over-year basis, new home sales were up 28.9% compared with January 2012.

Compared to a year ago, existing home sales were up 10.2% in February. Pending home sales were up 9.5% compared with January 2012. And total construction spending has risen 7.1% since January 2012.

Housing prices have also seen solid gains. According to the most recent data, the Standard & Poor's/Case-Shiller 20-city housing price index was up 6.8% compared to January 2012, the largest annual gain since 2006.

According to NAR, the national median existing home price for all housing types was $173,600 in February, up 11.6% from February 2012, the strongest year-over-year gain since November 2005.

Meanwhile, inventory remains low and builders are much more optimistic compared to a year ago. At the current sales pace, there's a 4.1-month supply of new homes on the market. It is anticipated that housing prices will continue to rise and inventory will remain tight due to lost building material production capacity and a limited pipeline of developed lots.

Gains in employment are helping to improve the housing market. Jobless claims in the week ending March 9 reached 332,000, the lowest level since January 2008, the very onset of what many have dubbed the Great Recession. For the week ending March 16, the less volatile four-week average of claims for unemployment benefits was 339,750, the lowest level since February 2008.

In the News WELCOME ABOARD HERE'S what's going on!   The combined construction of new single-family homes and apartments in February rose 0.8% to a seasonally adjusted annual rate of 917,000 units. Single-family starts increased 0.5%. Volatile multifamily starts rose 1.4%. Compared to the previous year, housing starts were up 27.7% in February. Applications for new building permits, seen as an indicator of future activity, rose 4.6% to an annual rate of 946,000 units. The National Association of Home Builders/Wells Fargo monthly housing market index fell two points in March to 44. An index reading below 50 indicates negative sentiment about the housing market. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 15 fell 7.1%. Purchase volume fell 4%. Refinancing applications decreased 8%. Existing home sales rose 0.8% in February to a seasonally adjusted annual rate of 4.98 million units from 4.94 million units in January. Compared to a year ago, existing home sales were up 10.2% in February. The inventory of unsold homes on the market rose 9.6% to 1.94 million in February, a 4.7-month supply at the current sales pace, up from a 4.3-month supply in January. The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.5% in February, following an upwardly revised 0.5% increase in January. Initial claims for unemployment benefits for the week ending March 16 rose by 2,000 to 336,000. Continuing claims for the week ending March 9 rose by 5,000 to 3.053 million. The less volatile four-week average of claims for unemployment benefits was 339,750, the lowest level since February 2008. Upcoming on the economic calendar are reports on the housing price index and new home sales on March 26, and pending home sales on March 27.

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The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 1 rose 14.8%. Purchase volume rose 15%. Refinancing applications also increased 15%.

Non-manufacturing activity rose to 56 in February from 55.2 in January. A reading above 50 signals expansion. It was the 38th straight month of expansion in the services sector.

Factory orders fell $9.6 billion or 2% in January to a seasonally adjusted $472.9 billion. This follows a 1.3% increase in December. Excluding the volatile transportation sector, orders increased 1.3% in January.

The trade deficit increased to $44.4 billion in January from $38.1 billion in December. Exports fell $2.2 billion or 1.2% to $184.5 billion. Imports increased $4.1 billion or 1.8% to $228.9 billion.

Retail sales rose 0.2% for the week ending March 2, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.8%.

Wholesalers increased their inventories 1.2% to $504.4 billion in January. Sales at the wholesale level fell 0.8% to $415.4 billion in January. On a year-over-year basis, sales were 3% higher than January 2012.

Initial claims for unemployment benefits for the week ending March 2 fell by 7,000 to 340,000. Continuing claims for the week ending February 23 rose by 7,000 to 3.09 million. The less volatile four-week average of claims for unemployment benefits was 348,750, the lowest level since early March 2008. The unemployment rate decreased to 7.7% in February from 7.9% in January. Employers added 236,000 jobs in February.

Upcoming on the economic calendar are reports on retail sales on March 13 and industrial production on March 15.

HI AND  WELCOME TO TODAY's REPORT:

New home sales surged 15.6% in January to a seasonally adjusted annual rate of 437,000 units — the highest level since July 2008 — from a revised rate of 378,000 units in December. On a year-over-year basis, new home sales were up 28.9% compared with January 2012. At the current sales pace, there is a 4.1-month supply of new homes on the market.

The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 0.2% in December after a 0.1% decline in November. On a year-over-year basis, prices rose 6.8% compared with December 2011, the largest annual gain since 2006.

Pending home sales, a forward-looking indicator based on signed contracts, rose 4.5% in January after a revised 2% decrease in December. On a year-over-year basis, pending home sales were up 9.5% compared with January 2012.

Orders for durable goods — items expected to last three or more years — fell $11.8 billion or 5.2% to $217 billion in January. This decrease follows a revised 3.7% increase in December. Excluding volatile transportation-related goods, January orders posted a monthly increase of 1.9%.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at a revised annual rate of 0.1% in the fourth quarter of 2012, compared to the initial estimate of a 0.1% decrease.

Manufacturing activity rose to 54.2 in February after a reading of 53.1 in January. A reading above 50 signals expansion.

Total construction spending fell 2.1% to $883.3 billion in January, following an upwardly revised 1.1% increase in December. Compared to January 2012, construction spending has risen 7.1%.

Initial claims for unemployment benefits for the week ending February 23 fell by 22,000 to 344,000. Continuing claims for the week ending February 16 fell by 91,000 to 3.074 million. The less volatile four-week average of claims for unemployment benefits was 355,000.

Upcoming on the economic calendar are reports on factory orders on March 6 and unemployment on March 8.

WELCOME BACK!

Existing home sales rose 0.4% in January to a seasonally adjusted annual rate of 4.92 million units from 4.90 million units in December. Compared to a year ago, existing home sales were up 9.1% in January. The inventory of unsold homes on the market fell 4.9% to 1.74 million in January, a 4.2-month supply at the current sales pace, down from a 4.5-month supply in December.

The National Association of Home Builders/Wells Fargo monthly housing market index fell one point in February to 46. An index reading below 50 indicates negative sentiment about the housing market.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending February 15 fell 1.7%.

Refinancing applications decreased 1.6%. Purchase volume fell 1.7%. The combined construction of new single-family homes and apartments in January fell 8.5% to a seasonally adjusted annual rate of 890,000 units. Single-family starts increased 0.8%. Volatile multifamily starts fell 24.1%. Compared to the previous year, housing starts were up 23.6% in January. Applications for new building permits, seen as an indicator of future activity, rose 1.8% to an annual rate of 925,000 units.

Consumer prices were unchanged in January, following a flat reading in December. Compared to January 2012, consumer prices have risen 1.6%. Consumer prices at the core rate — excluding volatile food and energy prices — were up 0.3% in January.

Initial claims for unemployment benefits for the week ending February 16 rose by 20,000 to 362,000. Continuing claims for the week ending February 9 rose by 11,000 to 3.148 million. The less volatile four-week average of claims for unemployment benefits was 360,750.

Upcoming on the economic calendar are reports on the housing price index on February 26 and pending home sales on February 27.

In the News WELCOME to my blog! Retail sales rose 0.1% to $416.6 billion in January. This follows a 0.5% increase in December. Compared to January 2012, retail sales have increased 4.4%. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending February 8 fell 6.4%. Purchase volume fell 10%. Refinancing applications decreased 6%. Import prices rose 0.6% in January, following a 0.5% decrease in December. On a year-over-year basis, import prices were down 1.3% in January. Export prices rose 0.3% in January, following a 0.1% decrease in December. Compared to a year ago, export prices were up 1.1% in January. Total business inventories rose 0.1% in December to $1.623 trillion, up 5.1% from a year ago. Total business sales increased 0.3% to $1.274 trillion in December, up 3.6% from a year ago. The total business inventories/sales ratio in December was 1.27. Industrial production at the nation's factories, mines and utilities fell 0.1% in January after increasing 0.4% in December.  Compared to January 2012, industrial production has increased 2.1%. Capacity utilization fell to 79.1% in January from 79.3% in December. The Reuters/University of Michigan consumer sentiment index for February's preliminary reading rose to 76.3 from 73.8 in January. Initial claims for unemployment benefits for the week ending February 9 fell by 27,000 to 341,000. Continuing claims for the week ending February 2 fell by 130,000 to 3.187 million. The less volatile four-week average of claims for unemployment benefits was 352,500. Upcoming on the economic calendar are reports on the housing market index on February 19, housing starts on February 20 and existing home sales on February 21. THANKS FOR READING!

GLAD TO BE BACK!   In the News The combined construction of new single-family homes and apartments in December rose 12.1% to a seasonally adjusted annual rate of 954,000 units. Single-family starts increased 8.1%. Volatile multifamily starts rose 20.3%. Compared to the previous year, housing starts were up 36.9% in December. Applications for new building permits, seen as an indicator of future activity, rose 0.3% to an annual rate of 903,000 units. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending January 11 rose 15.2%. Purchase volume rose 13%. Refinancing applications increased 15%. The producer price index, which tracks wholesale price inflation, fell 0.2% in December, following a 0.8% decrease in November. On a year-over-year basis, wholesale prices were up 1.3% in December. Retail sales rose 0.5% to $415.7 billion in December. This follows a 0.4% increase in November. Compared to December 2011, retail sales have increased 4.7%. Consumer prices were unchanged in December, following a 0.3% decrease in November. Compared to December 2011, consumer prices have risen 1.7%. The National Association of Home Builders/Wells Fargo monthly housing market index remained unchanged in January at 47, holding at the highest level since April 2006. An index reading below 50 indicates negative sentiment about the housing market. Initial claims for unemployment benefits for the week ending January 12 fell by 37,000 to 335,000, the lowest level since January 2008. Continuing claims for the week ending January 5 rose by 87,000 to 3.214 million. The less volatile four-week average of claims for unemployment benefits was 359,250. Upcoming on the economic calendar are reports on existing home sales on January 22 and new home sales on January 25. Share: