Release Date: May 25, 2006
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MAY 2006

The Commerce Department revised upwards the first quarter GDP to an annual rate of a 5.3% increase. This was above the original 4.8% annual growth rate reported a month ago. However, many economic signposts point to the economy starting to slow down. The index of leading economic indicators fell by 0.1 percentage point in April to an index of 138.9. Orders for durable goods fell 4.8% in April, after several months of increases. New home sales were up 4.9% in April, but the increase was a slower pace than earlier in the year. On a positive note, productivity rose 3.2% in the first quarter after a 0.3% decline in the fourth quarter of 2005. The consumer confident index dropped in May to 79, its lowest point since just after Hurricane Katrina hit. The consumer price index rose 0.6% in April and 3.5% in the last 12 months, touching off fears of inflation hitting the economy.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in April at 197.6 (1982 equals 100), down from 199.8 the previous month, and down from 204.8 for the same month a year ago. Hardwood lumber was at an index of 194.7, up from 193.9 for the preceding month but down from 196.2 for the same month a year ago. Millwork prices were at an index of 201.6, virtually even with 201.5 the preceding month and up from 196.7 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 $13.71 an hour, up from a revised $13.49 the previous month and up from $13.45 an hour a year ago. The average work week of non-supervisory workers was 37.9 hours, down slightly from 38.4 hours the previous month and down from 39.1 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 $5.67 billion value of retail and non-office commercial construction in March, up from a revised $5.45 billion for the previous month, and up from $5.26 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in April totaled $287.11 billion, up from a revised $285.02 billion for the previous month and up from $264.48 billion for the same month a year ago. Unadjusted retail sales were $279.62 billion, down from $283.15 billion for the previous month, but up from $259.15 billion a year ago. Seasonally adjusted department store sales totaled $17.79 billion, even with $17.81 billion the previous month but down from $18.05 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.51 billion, up slightly from $17.45 the previous month and up from $16.75 billion for the same month a year ago.