Release Date: August 29, 2007
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AUGUST 2007

Attention is focused on how long the current credit crunch will last, and whether it will have broader impact in crimping the nation�s economy. So far most economic signs are holding up. The Commerce Department revised upward the second quarter Gross Domestic Product to an annual growth rate of 4%, higher than the 3.4% origi9nally projected for the quarter a month ago. The Federal Reserve reported that industrial production in July was up 0.3% over the previous month and up 1.4% above a year ago. The Conference Board reported that the index of leading economic indicators rose 0.4% in July after falling 0.3% in June. New orders for durable goods gained 5.9% in July. The housing market continued to be off in most areas, although the sales of new homes surprisingly were up 2.8% in July. However, sales of existing homes in the month dipped 0.2%, the fifth consecutive month of decline. The Conference Board also reported that consumer confidence dropped in July from the month earlier.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in July at an index of 180.0(1982 equals 100), up from 177.1 the previous month, but down from 187.3 for the same month a year ago. Hardwood lumber was at an index of 193.1, almost the same as 193.0 for the preceding month but down from 104.1 for the same month a year ago. Millwork prices were at an index of 201.5, almost the same as 201.2 the preceding month, and down from 202.7 for the same period 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 $14.26 an hour, down from a revised $14.39 the previous month, but up from $13.76 an hour a year ago. The average work week of non-supervisor workers was 38.9 hours, down from 39.5 the previous month, but almost even 38.7 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 $7.61 billion annual rate value of retail and non-office commercial construction in June, up from a revised $7.32 billion for the previous month, and up from $6.54 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in July totaled $301.02 billion, up from a revised $299.71 billion for the previous month, and up from $288.26 billion for the same month a year ago. Unadjusted retail sales were $296.42 billion, down from $301.75 billion for the previous month, but up from $284.45 billion a year ago. Seasonally adjusted department store sales totaled $17.73 billion, up slightly from a revised $17.46 the previous month, and up from $17.52 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $19.05 billion, up from $18.79 the previous month and up from $18.01 billion for the same month a year ago.