Economic Roundup: July 12, 2010

In the News

Consumer credit was down for the month of May, despite low interest rates, the Federal Reserve reported in its latest findings released last week.
 
Consumer credit decreased at an annual rate of 4.5 percent for the month, with revolving debt, such as credit cards, dropping 10.5 percent and non-revolving debt, such as car loans, decreasing by 1.5 percent.
 
Total outstanding consumer debt, excluding mortgages, went from $2.42 trillion in April to $2.41 trillion by the end of May. The $9.1 billion plunge was considerably larger than many economists had expected, and marked the 15th monthly decline over a stretch of 17 months.
 
Meanwhile, retailers reported mixed performance at the cash register for June. Sales at retail stores open for at least a year jumped by 3.1 percent, according to Thomson Reuters's monthly survey of 28 major national retailers. The increase was slightly below expectations, and hinted at a slower pace for economic recovery.
 
Overall, Thomson Reuters reported that 56 percent of retailers missed their expectations, reflecting increased caution on the part of buyers.
 
"Department stores benefited toward the end of the month from the excess heat across the country, particularly in the Northeast but also out West," Ken Perkins, president of Retail Metrics, told Bloomberg. "Results were clearly mixed, and there was selective buying going on."
 
Department stores and chains aimed at younger buyers led the month in sales with warmer weather and summer sales promotions. Strong performers included Nordstrom Inc. with a 14.1 percent sales increase; Abercrombie & Fitch Co. with a 9 percent increase; Aeropostale with an 8 percent gain; Macy's Inc. with a 6.5 percent gain; Kohl's Corp. with a rise 5.9 percent; and J.C. Penney Co. with a 4.5 percent gain.
 
This week, look for news on retail sales (July 14), business inventories (July 14), and export and import prices (July 14) from the Census Bureau; the producer price index (July 15) and the consumer price index (July 16) from the Bureau of Labor Statistics; and industrial production (July 15) from the Federal Reserve.
 

Equal Housing Lender. � 2010 W.J. Bradley Mortgage Capital Corp., 201 Columbine Street Suite 300, Denver, CO 80206. Phone #303-825-5670. Trade/service marks are the property of W.J. Bradley Mortgage Capital Corp. This is not a commitment to lend. Restrictions apply. All rights reserved. Some products may not be available in all states. AZ License # BK-0903998; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act RML# 4131002; To check the license status of your CO Mortgage Broker, visit www.dora.state.co.us/real-estate/index.htm; Florida Mortgage Lender license #ML.100000098; Georgia Residential Mortgage Licensee, License No. 20233; ID Mortgage Broker License No. MBL-2803; IL Residential Mortgage Licensee – License #MB.6760738, 201 Columbine Street, Suite 300, Denver, CO 80206; MI First Mortgage License No. FL0011392; Mississippi Mortgage Lender License #4298/2009; MN Residential Mortgage Originator License No. 20447094; NV Mortgage Banker License No. 2061; NV Mortgage Broker License No. 504; NM Mortgage Loan Company and Loan Broker Act Reg. No. 01856; OK Mortgage Broker- License No. MB001365; OR Mortgage Lender License No. ML-776; TN Mortgage Company Registration Certificate No. 3629; TX Mortgage Banker Reg. No. 74182; UT Mortgage Lender Company License No. 5495659-MLCO; Vermont Broker License #0995MB; Vermont Lender License #6141; WA Consumer Loan License No. CL-3233; Wisconsin Mortgage Banker License No. 699991..