Release Date: August 28, 2008
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August 2008

The nation’s economy in the second quarter proved to be stronger than originally projected, as the Commerce Department reported that the Gross Domestic Product rose at an annual rate of 3.2%. This was up from an earlier estimate of a 1.9% gain. Industrial production also had a 0.2% increase in July on top of a 0.2% gain in June. Durable goods orders rose 1.3% in July for the third consecutive monthly increase. However, the survey of leading economic indicators dropped 0.7% in July. Productivity remained a bright note, rising at an annual rate of 2.2% in the second quarter. The consumer confidence index in August also rose to 56.9 from 51.9 a month earlier. Sales of existing homes were up 3.1% in July as buyers took advantage of still falling home prices. U.S. new home construction, however, fell 11% in July to the lowest rate in 17 years.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in July at an index of 166.9 (1982 equals 100), down from 170.9 the previous month, and down from 179.2 for the same month a year ago. Hardwood lumber was at an index of 184.5, down from 185.7 for the preceding month and down from 192.3 for the same month a year ago. Millwork prices were at an index of 205.5, up from 204.8 the preceding month, and up from 201.5 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 $14.53 an hour, down slightly from a revised $14.59 the previous month, but up from $14.36 an hour a year ago. The average work week of non−supervisor workers was 38.7 hours, down from 39.2 hours the previous month, and down from 39.2 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 $7.77 billion annual rate value of retail and non−office commercial construction in June, up from a revised $7.56 billion the previous month, but down from $7.88 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in July totaled $316.70 billion, up from a revised $315.49 billion for the previous month, and up from $298.83 billion for the same month a year ago. Unadjusted retail sales were $319.54, up from $314.25 billion for the previous month, and up from $296.30 billion a year ago. Seasonally adjusted department store sales totaled $17.19 billion, almost equal to $17.18 the previous month, but down from $17.56 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $19.13 billion, up slightly from $19.08 the previous month, and up from $18.95 billion for the same month a year ago.