A WEEKLY ECONOMIC UPDATE FROM CONGRESSMAN GREGORY W. MEEKS

ECONOMIC ACTIVITY

Production

• The purchasing managers’ index (PMI) for manufacturing registered 55.5 in July, which indicates expansion in the manufacturing sector. The PMI and its components are constructed so that an index below 50 indicates a contraction, while an index above 50 indicates growth. [ISM]

• Non-manufacturing supply managers continued to report growth in July, at a slightly faster pace than had been reported for June. The overall non-manufacturing index registered 54.3, up 0.5 points from June. [ISM]

Employment

• Private-sector payrolls increased by 71,000 in July. Private-sector employment has risen 630,000 since its trough in December 2009. [BLS]

Consumer Spending

• Real disposable personal income rose 0.2% in June, and real personal consumption expenditures (PCE) increased 0.1%. The price index for PCE fell 0.1%. The June personal saving rate rose to 6.4%, its highest level in a year and the third consecutive monthly increase. In the second quarter of 2010 real PCE grew 1.6% at annual rate, similar to its rate of growth since 2009:Q3. [BEA]

• Seasonally adjusted sales of light vehicles increased 0.4 million units at an annual rate to 11.5 million units at an annual rate in July. Sales are up 2.2 percent compared to one year ago despite the fact that those sales were elevated in part due to the cash-for-clunkers program. [BEA]

Housing

• New single-family home sales rose 23.6% in June to 330,000 units, partially retracing the steep drop seen in May. [Census]