Release Date: July 28, 2006
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JULY 2006

The economy after a tepid showing in May turned stronger in June. The Federal Reserve reported that industrial production rose at a higher-than-expected 0.8% rate in June, following a 0.1% increase in the month earlier. New orders for durable goods jumped 3.1% in June, the fourth increase in the last five months. Buoyed by global demand, U.S. exports in the first five months of the year climbed a robust 10% from a year ago. The Conference Board reported that consumer confidence rose in July to an index of 106.5, up from 105.4 for the previous month. Not unexpectedly, the housing market was one weak area of the economy. Sales of existing homes fell 1.3% in June from the previous month and were down 8.9% from a year ago. Housing starts dropped 5.3% in June.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in June at 192.4 (1982 equals 100), down from 201.7 the previous month, and down from 202.3 for the same month a year ago. Hardwood lumber was at an index of 196.5, nearly the same as 196.4 for the preceding month but up from 195.5 for the same month a year ago. Millwork prices were at an index of 202.4, up slightly from 202.0 the preceding month and up from 196.8 a year earlier.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in June was $13.83 an hour, up from a revised $13.66 the previous month, and up from $13.47 an hour a year ago. The average work week of non-supervisor workers was 38.6 hours, almost the same as 38.4 hours the previous month but down from 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 $4.21 billion annual rate value of retail and non-office commercial construction in May, down slightly from a revised $4.48 billion for the previous month, and down from $4.58 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in June totaled $290.08 billion, up slightly from a revised $289.34 billion for the previous month and up from $267.26 billion for the same month a year ago. Unadjusted retail sales were $292.08 billion, down from $297.46 billion for the previous month, but up from $267.45 billion a year ago. Seasonally adjusted department store sales totaled $17.74 billion, almost even with $17.79 billion the previous month, but down from $18.14 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.68 billion, up slightly from $17.62 the previous month and up from $16.85 billion for the same month a year ago.