A WEEKLY ECONOMIC UPDATE FROM CONGRESSMAN GREGORY W. MEEKS

(ECONOMIC ACTIVITY

Employment

• For the week ended July 3, initial claims for unemployment insurance fell by 21,000 to 454,000 – a larger drop than expected. The four-week moving average of continued unemployment insurance claims is 4.554 million, down 70,000 from four weeks earlier. [Labor]

Economic Growth

• The International Monetary Fund raised its U.S. growth forecast for 2010 to 3.3%, up 0.2% from its previous projection. The IMF has increased the forecast for 2010 U.S. growth in each of its last five forecasts. In addition, the 2011 U.S. growth forecast rose to 2.9%, a 0.3% increase. [IMF]

Business Activity

• Economic activity in the non-manufacturing sector expanded in June for the sixth consecutive month. The non-manufacturing ISM index registered 53.8, and 15 of the 17 surveyed industries reported growth. [ISM]

• Inventories at U.S. wholesalers rose 0.5% in May, marking five straight months of increases. [Commerce]

Consumers

• U.S. retailers’ sales are growing at the fastest pace since 2006. In the first five months of the retail fiscal year that began on Jan. 31, sales rose at a pace of 3.8%. [International Council of Shopping Centers]

Same-store sales at the major chains rose 0.4% in June. The increase over the previous 12 months was 3.0%, slightly above last month’s level. [ICSC]