More Progress on the Economic Front!

Chicago Purchasing Manager's Index Rose

The Chicago Purchasing Manager’s Index rose to 50.0 in August, the highest level since September 2008. Inventories, especially in auto-related industries, continue to be liquidated rapidly, which bodes well for future strength.

ISM Manufacturing Indes Rose

The ISM Manufacturing Index rose to 52.9 in August, indicating the first expansion in industrial activity since January 2008. Efforts to correct inventory liquidation and to boost auto production drove the increase.

Residential Spending Increases

Construction spending was weaker than expected, falling 0.2% (-10.5% yoy). However, an increase of 2.3% in residential spending supports expectations of a near-term rebound in housing activity.  Pending home sales rose 3.2% in July (+12.9% yoy), suggesting firmer figures for existing sales in the near term.

Factory Orders Rose

Factory orders rose 1.3% in July (-23.2% yoy), driven primarily by durable goods and nondefense capital goods orders. Factory inventories fell only 0.7% in July, a meaningfully smaller decline than in previous months.

ISM Nonmanufacturing Index Increased

The ISM Nonmanufacturing Index increased in August to 48.4, indicating a modest rate of contraction in the sector.

NonFarm Payrolls Fell by Much Less

Although nonfarm payrolls fell by “only” 216k in August, prior months were revised down, and the unemployment rate rose to 9.7%. Also disappointing was that work schedules did not lengthen, as they often do in early recovery.

Economic and Demographic Webinar on California Specific Real Estate Issues

You are invited to register for and attend The Exeter Edge™ Webinar entitled "The Reality of the California Real Estate Market: Siftings from the Tea Leaves of a Demographic Guru" with a sub title of "The Nation of California: An Almost Flat Line for 2009."