Release Date: August 30, 2005
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AUGUST 2005

The economy was Janus-faced in July, with some major indicators slipping and others showing strong gains. Durable goods sales fell 4.9% in July to $204.71 billion from June – a more severe drop than anticipated. The Commerce Department, however, predicted that U.S. industrial production would grow 3.7% in 2005, a little below the 4.1% growth for last year. The University of Michigan consumer confidence survey slipped to an index of 92.7 in August, down from 96.5 for July. The consumer price index, driven by a sharp rise in energy prices, rose 0.5% in July, the fastest pace in three months. Sales of existing homes grew 4.6% in the second quarter due to low mortgage rates and a tight supply of homes. Sales of new homes jumped 6.5% in July from the previous month.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in July at 197.3 (1982 equals 100), down from 201.9 the previous month and down from 208.6 for the same month a year ago. Hardwood lumber was at an index of 194.6, virtually even with 194.9 the preceding month but down from 200.3 the same month a year ago. Millwork prices were at an index of 197.2, nearly equal to 196.9 a month earlier and up from 194.2 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in July was $13.41 an hour, down slightly from $13.49 the previous month but up from $13.12 an hour a year ago. The average work week of non-supervisory workers was 39.0 hours, down slightly from 39.4 the previous month and down slightly from 39.3 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 $6.25 billion value of retail and non-office commercial construction in June, up from a revised $5.92 billion for the previous month, and up from $5.97 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in July totaled $271.39 billion, up from a revised $270.57 billion for the previous month and up from $250.97 billion for the same month a year ago. Unadjusted retail sales were $269.60 billion, down from $271.41 billion for the previous month, but up from $252.71 billion a year ago. Seasonally adjusted department store sales totaled $17.97 billion, down slightly from $18.15 billion the previous month but up from $17.87 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $16.73 billion, down slightly from $16.81 the previous month but up from $15.65 billion for the same month a year ago.