Economic Update

by on June 15, 2009

On Monday, June 1st, the Commerce Department reported that total construction spending increased by 0.8%. This shocked economists as they had predicted a decline of 1.2%. It was the biggest gain since August of 2008 and marked the 2nd straight month of increase.

Numbers also rose in the manufacturing sector for the 2nd straight month with a 42.8 up from 40.1 in April. Optimism was curbed however because anything below 50 is considered contraction. Good news, it was the 5th straight increase in this number from a record low of 32.9 in December. Most important, new orders rose to 51.1. This is the first expansion since November 2007, when the recession began.

The National Association of Realtors reported that pending home sales rose by 6.7% to 90.3 in April from 84.6 in March. This is the highest monthly jump since October 2001 and the 3rd consecutive month of increase since the record low posted in January 2009.

The Commerce Department reported factory orders rose 0.7% in April, after a decline in March. This number reflects increased demand for automobiles, electrical equipment and construction machinery.

All in all, the economy is definitely showing signs of recovery.

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