US Economy News and Report: In June

1. ISM Manufacturing Index
US Institute for Supply Management Manufacturing Index dropped to 59.7 in May vs 60.4 in Apr 2010. Anyhow, the figures still above market expectation of a decline to 59.
Meanwhile, the Price Paid Index fell to 77.5 from last month 78 while expectation was just 72. This has marked the 10th consecutive months of manufacturing expansion with 16/18 manufacturing industries are growth in May as well.
The ISM Manufacturing Index shows business conditions in the US manufacturing sector, considering expectation for future production, new orders, inventories, employment and deliveries. It is a significant indicator of the overall economic condition in US.

2. New Jobless Claim
The trend reported by US Labor Department as below:
May 7 - 445k
May 14 - 474k +29k
May 21 - 463k -11k
May 28 - 459k - 4k
June 4 - 460k + 1k
June 11 - 472k +12k

3. Trade Deficit
US Trade Deficit widened 0.6% m-o-m to USD40.3B in Apr, as the highest level in the past 16months. The Europe's debt crisis could cripple the export recovery in US, as Economist worry that Europe would dampen demand in a region which accounts for about 15% of US Exports.

4. Exports
US export in Apr slipped to USD148.8B as demand of US farm product dropped USD647M. Besides, the manufactured goods from electric generators to industrial machinery and aircraft engines also shows weakness spreading of numbers.
Meanwhile, import fell to USD189.1B, as consumer goods imports dipped USD741M, and the biggest decline was in pharmaceutical products.

5. Factories Lead
Production in US was the highest rise since August. Output at factories, mines and utilities increased 1.2% last month after a 0.7% gained in Apr. The Housing starts fell 10%, the biggest decline since March of 2009.

6. May Producer Prices
Wholesales prices in US fell in May for 3rd times in the past 4 months, due to lower costs for energy and food as European default concerns threatened to slow the global expansion. The price declined 3%, in price paid to factories, farmers and other producers was smaller than projected by the median forecast of economist.

7. Keep Intrest Rates at Record Low
The US Fed keep the benchmark interest Rate at a record low of 0% to 0.25% for an extended period, signaling concerns that Europe's sovereign debt crisis may hurt the country economy recovery. Eventually, Household spending is increasing but remain constrained by high unemployment, modest income growth, lower housing wealth and tight credit. Economist believe that Feb will only raise the rate in 1Q of 2011.

8. May Home Sales Drop
New home sales fell by 32.7% m-o-m to annual pace of 300000units in May, compared with 14.7% in Apr. New home sales y-o-y fell by 19.1% in May, after a rising by 29.3% in Apr. This suggest a recovery of the housing market in US remains uneven.