Release Date: February 28, 2008
Phone: 954-893-7300
Fax: 954-893-7500
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FEBRUARY 2008

Almost all signs showed the deteriorating economy, and analysts feared there would be little letup in the slide in the near future. Durable goods sales dropped 5.3% in January, compared to a 2.3% rise the previous month. The Conference Board reported that the index of leading economic indicators dipped 0.1% in January, the fourth consecutive month of decline. The Commerce Department final assessment of the gross domestic product (GDP) showed a small 0.6% increase in the fourth quarter of 2007, unchanged from an earlier estimate. The housing market continued to hemorrhage. The selling price of homes in the last quarter of 2007 plunged 8.9%, the steepest drop in 20 years. Sales of existing homes were down 0.4% in January and off 23.4% from a year ago. Productivity of workers rose 1.8% in Q4 ’07, down from 6% increase the previous quarter. Consumer confidence, not unexpectedly, fell to an index of 75 in February, down from 87.3 only a month before.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in January at an index of 162.6 (1982 equals 100), down from a revised 165.4 the previous month, and down from 176.9 for the same month a year ago. Hardwood lumber was at an index of 187.3, down from 188.7 for the preceding month and down from 195.2 for the same month a year ago. Millwork prices were at an index of 201.8, up slightly from 201.3 the preceding month, and up from 201.2 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 January was $14.40 an hour, up from a revised $14.32 the previous month, and up from $14.13 an hour a year ago. The average work week of non-supervisor workers was 38.1 hours, down from 39.2 the previous month, and down from 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 $6.61 billion annual rate value of retail and non-office commercial construction in December, down from $7.29 billion the previous month, but up from $6.18 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in January totaled $306.18 billion, up from a revised $305.37 billion for the previous month, and up from $291.82 billion for the same month a year ago. Unadjusted retail sales were $280.69, down from the Christmas seasonal $363.19 billion for the previous month, but up from $265.53 billion a year ago. Seasonally adjusted department store sales totaled $17.05 billion, down slightly from a revised $17.24 the previous month, and down from $17.90 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $18.78 billion, up slightly from $18.52 the previous month, and even with $18.79 billion for the same month a year ago