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.