Economic Update – June 14, 2011

Retail sales rose 0.4% for the week ending June 4, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.5%.

The trade deficit decreased 6.7% to $43.7 billion in April from a revised $46.8 billion in March. Exports rose 1.3% to $175.6 billion. Imports decreased 0.4% to $219.2 billion.

Wholesalers increased their inventories 0.8% to $447.2 billion in April. This followed a 1.1% rise in March. Sales at the wholesale level rose 0.3% in April to $393.5 billion. On a year-over-year basis, sales were 14.4% higher since April 2010.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 3 fell 0.4%. Refinancing applications increased 1.3%. Purchase volume fell 4.4%.

Import prices rose 0.2% in May, following a revised 2.1% increase in April. On a year-over-year basis, import prices are up 12.5%. Export prices rose 0.2% in May. On a year-over-year basis, export prices are up 9%.

According to the Federal Reserve, consumer credit debt rose in April by $6.25 billion for a total credit level of $2.43 trillion. Figures for March were revised from an initial gain of $6 billion to a gain of $4.82 billion. Revolving debt, which includes credit cards, fell by $0.9 billion. Non-revolving debt, including loans for cars, rose by $7.2 billion.

Initial claims for unemployment benefits rose by 1,000 to 427,000 for the week ending June 4. Continuing claims for the week ending May 28 fell by 71,000 to 3.68 million.

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