Research >> Economics
DJ-BTMU U.S. Business Barometer Down 0.2%
For the week ending May 8, 2010, the DJ-BTMU U.S. Business Barometer declined -0.2% for the first time after growing for eleven straight weeks. As we suspected, the surge in mortgage applications leading up to the expiration of the homebuyer tax credits has now given way to the first sign of payback. In the latest week the mortgage application volume dropped by -9.5 percent, shaving a tenth of a percent from the barometer’s growth. A drop in truck and lumber production accounted for the rest of the barometer’s decline. Weakness on the other side of government stimulus won’t be enough to drag the economy down, however, as chain store sales remain strong (supported by job growth) as well as business investment, which is supporting the manufacturing sector. Still, we are keeping a close watch on weekly production indicators for any signs of contagion from the European debt crisis that may slow our nation’s industrial sector.
Posted: May 20, 2010 Thursday 10:00 AM