Release Date: July 2001
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JULY 2001

The nation's GDP slowed in the second quarter to an annual rate of 0.7 percent, the lowest in eight years. That is no surprise to any one following the rising unemployment rate drop in capital spending, and slowdown in personal income growth. A surprising note was a 2.3 percent jump in factory orders in May. Business inventories are lower, except in telecommunications which may take until 2002 to work down bloated stocks. In other sectors, however, if business picks up, there should be a quick upturn in production because of low inventories. Economists are waiting to see what consumers do with their tax rebate checks now starting to come in the mail. Best guess is they will spend the money, which should also help an upturn.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in June at 182.6 (1982 equals 100), up slightly from 182.1 for the previous month and up from 179.6 for the same month a year ago. Hardwood lumber was at an index of 180.7, down from 181.9 for the preceding month and down from 186.5 the same month a year ago. Millwork prices were at an index of 179/4, up from 178.5 the preceding month, and up from 176.7 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the total number of workers in the fixture and furniture industry in June was 533,000 down from a revised 537,500 the previous month and down from 560,600 for the same month a year ago. Average hourly wage was $12.24 an hour, up from $12.09 the previous month and up from $11.70 an hour a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new construction, new stores were part of the $5.3 billion value of retail and non-office commercial construction in May, up slightly from $5.1 billion for the previous month, and up from $5.1 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in June totaled $220.02 billion, down from a revised $220.44 billion for the previous month and up from $213.15 billion for the same month a year ago. Unadjusted retail sales were $220.12 billion, down from $226.98 billion for the previous month, but up from $214.22 billion a year ago. Seasonally adjusted department store sales totaled $19.72 billion, almost even with a revised $19.54 billion the previous month and $19.63 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $14.02 billion, down slightly from $14.16 billion for the previous month and up from $13.91 billion for the same month a year ago.