Release Date: August 2001
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AUGUST 2001

Storm clouds are swirling over almost all the global economy – and as the U.S. slows to a crawl, the ramifications are felt in countries depending of exports to America to stem the fall in their GDP. In the U.S. factory orders in June fell 2.4% on top of a 2.2% drop the previous month – both worse figures than analysts had expected. Not surprisingly, factory production also slid in July 0.1%, the tenth consecutive month of declines. Personal income rose 0.5% in July from the prior month, helped by the income tax refund checks. But the extra money in pocket did little for retail sales which eked out a miniscule gain. Only housing remained a bright spot, as new home construction in July rose nearly 3% from the previous month, buoyed by falling mortgage rates.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed the overall lumber price index in July at 175.1 (1982 equals 100), a sharp drop from 182.6 for the previous month and down from 176.1 for the same month a year ago. Hardwood lumber was at an index of 180.1, down slightly from 180.7 for the preceding month and down from 186.6 the same month a year ago. Millwork prices were at an index of 179.3, even with 178.4 the preceding month, and up from 176.9 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 July was 529,900, down from a revised 533,300 the previous month and down from 557,600 for the same month a year ago. Average hourly wage was $12.24 an hour, up from a revised $12.15 the previous month and up from $11.76 an hour a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $5.4 billion value of retail and non-office commercial construction in June, up slightly from $5.1 billion for the previous month, and up from $5.3 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in July totaled $220.16 billion, up slightly from a revised $219.74 billion for the previous month and up from $213.83 billion for the same month a year ago. Unadjusted retail sales were $215.66 billion, down from $220.09 billion for the previous month, but up from $209.72 billion a year ago. Seasonally adjusted department store sales totaled $19.79 billion, almost even with a revised $19.71 billion the previous month and $19.74 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $14.79 billion, up slightly from $14.71 billion for the previous month and up from $17.74 billion for the same month a year ago.