June 1, 2010

A WEEKLY ECONOMIC UPDATE FROM CONGRESSMAN GREGORY W. MEEKS

(WASHINGTON, DC)–

Economic Activity

Consumers

• The Conference Board Consumer Confidence index has reached its highest level since March 2008.  The index rose 5.6 points to 63.3 in May, marking its third consecutive increase.  The proportion of respondents expecting more jobs over the next six months is at its highest level since 2004. [Conference Board]

• Real disposable personal income rose 0.5% in April, the largest increase since May 2009.  Total personal income increased 0.4% and is up 2.5% for the year. [BEA]

Industrial Sector

• For the tenth consecutive month, the manufacturing sector expanded. The purchasing managers’ index registered 59.7 in May.  Of the 18 industries surveyed, 16 reported growth, matching the broad gains made in March and April. [ISM]

• Manufacturers’ new orders for durable goods increased 2.9% in April, more than double the expected gain. Shipments of core capital goods rose 0.2%, following substantial increases of 2.3% in each of the previous two months. [Commerce]

Housing

• New single-family home sales rose 14.8% in April, above expectations.  This was partly due to the expiration of the homebuyer tax credits on April 30.  Sales have increased 47.8% over the past 12 months and are at a two-year high. [Commerce]

Employment

• Initial unemployment insurance claims fell by 14,000 in the week ended May 22 to 460,000.  The four-week moving average, which smoothes for volatility, stands at 456,500, down 6,750 from four weeks earlier. [Labor] 

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