National Economic News
The Federal Reserve Bank raised short term interest rates for the 8th time in a year, to 3 percent, in an ongoing quest to control inflation. (The Denver Post, May 4, 2005).
The U.S. factory orders logged an increase in March according to the Commerce Department. This was in spite of a large drop in demand for big-ticket items, believed to be linked to increasing energy prices. (The Denver Post, May 5, 2005).
The U.S. service economy continued its expansion for the 25th straight month in April, but at a slower rate than recorded in March. (The Denver Post, May 5, 2005).
The Labor Department announced that nationwide payrolls increased by 274,000 new jobs in April, which was nearly 100,000 more than predicted. Meanwhile, the unemployment rate held steady at 5.2 percent. (The Rocky Mountain News, May 7, 2005).
According to a report in the London Financial Times, real wages in the U.S. are falling at their fastest rate in 14 years. The culprit is inflation, which rose 3.1 percent in the year that ended in March, while salaries grew only 2.4 percent. (The Denver Post, May 11, 2005).
The Commerce Department reported that the U.S. trade deficit fell sharply in March, to its lowest level in six months, as U.S. exports climbed to an all-time high. Imports declined, driven in part by a slowdown in clothing shipments from China. (The Denver Post, May 12, 2005).
Stock prices continued to take direction from oil prices, rising and falling as the oil price moved in the opposite direction. (The Rocky Mountain News, May 14, 2005).
The Labor Department reported that wholesale prices rose 0.6 percent in April, while industrial production faltered and housing construction began to rebounded. The mixed signals on the economy were summed up as an "OK economy that is moving forward," according to Mark Zandi, the chief economist at Economy.com. (The Denver Post, May 18, 2005).
Prices and sales of previously owned homes hit records last month, according to the National Association of Realtors. The median price of $206,000 was up 6.7 percent from the previous month and 15.1 percent from the prior year. (The Denver Post, May 25, 2005).
The U.S. economy grew by 3.5 percent in the first quarter of 2005, higher than estimated. Investors interpreted the report as meaning the risk form inflation was lessening and the economy was still expanding. (The Denver Post, May 27, 2005).
Regional Economic News
Colorado was among five states that collectively account for nearly half the nation's foreclosures in March according to a study by Realty-Trac. Forty five percent of the foreclosures in March were in Colorado, Georgia, Florida, Texas and Utah. (The Denver Post, May 6, 2005).
The Colorado Department of Labor and Employment reported that the state had 41,700 more jobs than it did a year ago, as of April, for a rise of 1.9 percent. Construction, retail trade, and business and professional services led in the gains. (The Rocky Mountain News, May 21, 2005).
