Release Date: September 27, 2007
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SEPTEMBER 2007

Concern is rising that the nation�s sputtering housing market could cause a slowdown in other parts of the economy. The latest revision of the Gross Domestic Product (GDP) in the second quarter was a look backward, showing an annual growth rate of a respectable 3.8% increase (although this was lowered from a 4% growth rate projection just a month ago). But economists don�t believe this showing will hold up. The Commerce Department report of durable goods sales in August was down 4.9% from July, the biggest drop on seven months. The index of leading economic indicators fell 0.6%, the largest decline in six months. The Federal Reserve Board, however, said industrial production in August was up 0.2% from a month earlier, and up 1.7% from a year ago. The housing market continued to nose-dive. Sales of existing homes dropped 4.3% in August, and new homes sales plummeted 8.3% from a month ago to the lowest level in seven years.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in August at an index of 177.2 (1982 equals 100), down from 180.0 the previous month, and down from 182.4 for the same month a year ago. Hardwood lumber was at an index of 192.8, down from 193.1 for the preceding month and down from 195.3 for the same month a year ago. Millwork prices were at an index of 201.2, almost the same as 201.5 the preceding month, and down from 202.3 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 August was $14.25 an hour, down from a revised $14.35 the previous month, but up from $13.84 an hour a year ago. The average work week of non-supervisor workers was 40.2 hours, up from 39.2 the previous month, and up from 39.6 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 $7.59 billion annual rate value of retail and non-office commercial construction in July, up from a revised $7.48 billion for the previous month, and up from $6.62 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in August totaled $300.49 billion, down from a revised $301.56 billion for the previous month, but up from $289,09 billion for the same month a year ago. Unadjusted retail sales were $309.46 billion, up from $297.98 billion for the previous month, and up from $296.01 billion a year ago. Seasonally adjusted department store sales totaled $17.60 billion, down slightly from a revised $17.64 the previous month, but up from $17.55 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $19.09 billion, almost the same as $19.09 the previous month and up from $17.03 billion for the same month a year ago.