Release Date: February 25, 2005
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FEBRUARY 2005

Rising consumer and wholesale prices have raised eyebrows about the threat of inflation again. The core consumer price index (without volatile energy and food prices) rose 0.8% in January, the largest jump since December 1998. The core wholesale price index in January was up 2.3% from a year ago, the biggest increase since mid-2002. Consumer confidence in the economy also slipped in February to an index of 104, down from 105.1 the previous month, according to the Conference Board. This despite a jump in consumer income of 0.6% in December and a 0.8% hike in personal spending. New housing starts rose 4.7%. Industrial production remained even with the previous month.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in January at 197.3 (1982 equals 100), up from 194.0 the previous month and up from 183.7 for the same month a year ago. Hardwood lumber was at an index of 199.7, even with the preceding month but up from 196.2 the same month a year ago. Millwork prices were at an index of 195.1, even with a month earlier 195.9 but up from 184.3 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in January was $13.39 an hour, down slightly from $13.48 the previous month but up from $13.29 an hour a year ago. The average work week of non-supervisory workers was 39.3 hours, down from 40.6 hours the previous month and nearly even with 39.4 hours 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 $5.26 billion value of retail and non-office commercial construction in December, down from a revised $5.76 billion for the previous month, but up from $4.78 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in January totaled $268.51 billion, up from a revised $266.9 billion for the previous month and up from $249.47 billion for the same month a year ago. Unadjusted retail sales were $241.09 billion, down from the holiday season $327.19 billion for the previous month, but up from $228.73 billion a year ago. Seasonally adjusted department store sales totaled $18.04 billion, up slightly from $17.98 billion the previous month and up from $17.70 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $16.24 billion, up from $15.95 the previous month and up from $15.64 billion for the same month a year ago.