Comparable retail sales at stores open a year or more (same-store sales) rose 3% in May, exceeding analysts’ 1% growth estimate, the UBS-International Council of Shopping Centers said June 5. Leading the way were upscale retailer Nordstrom Inc., up 10.9%, and discounters Costco Wholesale Corp., up 9%, and Wal-Mart Stores Inc., up 3.9%.
The unemployment rate shot up to 5.5% in May from 5% in April, its highest level since October 2004, the Labor Department said on June 6. Although the 49,000 jobs cut from payrolls were fewer than the 58,000 job losses predicted by economists, Wall Street had foreseen the unemployment rate rising to only 5.1%.
Orders for manufactured goods increased 1.1% in April, surprising analysts who had forecast that overall orders would dip slightly in April, the Commerce Department reported June 3. Although orders for autos and airplanes were weak, orders for mining and oil field equipment jumped 48.6% and orders for electrical equipment and appliances surged 28.1%.
The service sector of the economy continues to expand, albeit at a modest pace. The Institute for Supply Management said on June 4 that its service sector index in May was 51.7, better than the reading of 50.3 economists had predicted. Any reading above 50 indicates the sector, which comprises roughly 80% of the total economy, is growing.
Although an improvement over March’s 0.6% decline, construction spending still fell by 0.4% in April, the Commerce Department said June 2. Private residential housing construction dropped 2.3% in April, the 26th consecutive monthly decline. However, spending on non-residential projects, such as hotels and motels, rose 1.6%.
Long-term mortgage rates remained virtually unchanged, according to Freddie Mac’s weekly survey ending June 5.
Economic news out this week includes reports on the trade balance on June 10 and the core consumer price index on June 13.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com, Yahoo Economic Calendar and Indymac Bank.
