Release Date: May 26, 2005
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MAY 2005

Many economic signs showed that a gradual slowdown is continuing in many areas. The Federal Reserve reported that industrial production in April declined 0.2% after a 0.1% gain in March. Business inventories increased 0.4% in March in the wake of a 05% jump in February. If inventories get too high, future production is impacted as companies slow down to work off stocks. The Conference Board said that the composite index of leading economic indicators fell 0.2% in April, on top of a 0.6% decline in March. The one red hot economic area is housing, where skyrocketing sales and home prices worry economists that a bubble market may threaten to bust in the future. Sales of existing homes rose a sharp 4.5% in April, the largest monthly gain since early 2004. Sales of new homes rose 0.2% in April over the previous month, and jumped 13.3% over a year ago.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in April at 204.8 (1982 equals 100), down slightly from 205.9 the previous month and down from 206.6 for the same month a year ago. Hardwood lumber was at an index of 1965.0 down from 196.2 the preceding month and down from 198.4 with the same month a year ago. Millwork prices were at an index of 196.3, up slightly from 195.9 a month earlier and up from 190.0 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in April was $13.42 an hour, up slightly from a revised $13.57 the previous month and up from $13.10 an hour a year ago. The average work week of non-supervisory workers was 39.2 hours, almost even with 39.4 the previous month and 39.5 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 $5.13 billion value of retail and non-office commercial construction in March, up from a revised $4.78 billion for the previous month, but down from $5.80 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in April totaled $266.80 billion, up from a revised $263.98 billion for the previous month and up from $246.72 billion for the same month a year ago. Unadjusted retail sales were $261.15 billion, up from $263.43 billion for the previous month, and up from $244.52 billion a year ago. Seasonally adjusted department store sales totaled $18.07 billion, up slightly from $17.83 billion the previous month and $17.78 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $16.72 billion, up slightly from $16.26 the previous month and up from $15.50 billion for the same month a year ago.