The 2020 Mid-Year Economic Update_long

Day: July 17, 2007

Wholesale Prices Fall 0.2% in June

The Producer Price Index for Finished Goods decreased 0.2 percent in June, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This decline followed advances of 0.9 percent in May and 0.7 percent in April. At the earlier stages of processing, prices received by producers of intermediate goods rose 0.5 percent in June after increasing 1.1 percent in the prior month, and the crude goods index moved up 0.3 percent following a 2.0-percent advance in May.
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Among prices for finished goods, the index for energy goods fell 1.1 percent in June after rising 4.1 percent in May. Prices for consumer foods decreased 0.8 percent following a 0.2-percent decline in the previous month. By contrast, slightly counteracting the downturn in finished goods ...

Industrial Production Up 0.5% in June

Industrial production rose 0.5 percent in June after a decrease of 0.1 percent in May. At 113.4 percent of its 2002 average in June, total industrial production was 1.4 percent above its year-earlier level.

Manufacturing output moved up 0.6 percent in June; excluding motor vehicles and parts, factory output increased 0.4 percent after having been unchanged in May. In June, the output indexes for mining and utilities registered gains of 0.5 percent and 0.3 percent respectively.

For the second quarter as a whole, total industrial production advanced at an annual rate of 2.9 percent after an increase of 1.1 percent in the first quarter.

Capacity utilization for total industry moved up to 81.7 percent in June; the rate was 0.6 percentage point below its ...

Canadian Manufacturing Shipments Unchanged in May

After a slight decrease in April, manufacturing shipments in Canada remained virtually unchanged in May (-0.1%) at&nbsp ; $49.7&nbsp ; billion. Manufacturing shipments had trended slowly downwards throughout most of&nbsp ; 2006, before posting a strong first quarter in&nbsp ; 2007.

Manufacturers continued to face several challenges during May. The Canadian dollar appreciated significantly against its American counterpart, reaching a 30-year high by the end of May. In addition, the Labour Force Survey reported a&nbsp ; 0.6% drop in manufacturing employment during the month, a loss of&nbsp ; 12,300&nbsp ; jobs.

Despite these challenges, the volume of manufacturing shipments, using constant dollars, rose&nbsp ; 0.4% to&nbsp ; $45.5&nbsp ; billion. After increasing in seven ...

ACR Group Hit by Residential Slowdown

ACR Group, Inc., Houston, TX, distributor of heating, ventilation and air conditioning equipment and supplies, reported profit dropped more than 50% in the first quarter ended May 31, 2007. Sales were down 4% to $59.5 million.
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ACR, which just agreed to be purchased by HVAC distributor Watsco, said the year-over-year decline in revenue and profitability was attributable to a weakening in key geographies, including Florida and Nevada, with high exposure to residential new construction end-markets. ACR also blamed the slow results on cooler- than-normal weather conditions.
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ACR had more than $240 million in annual sales in ...

Stock Building Supply to Close 24 More Branches

Wolseley plc has reported it will close 24 more Stock Building Supply branches, primarily in the Midwest. The closures include a 370 headcount reduction.
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The announcement comes after closing 22 branches and reducing headcount by about 4,500 in the past year, or a quarter of total employees.
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Wolseley reported sales at Stock were down nearly 15% in the first 11 months of the fiscal year; commodity price deflation caused revenues to decline a further 10%. Profit was down two-thirds.
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Lumber and structural panel prices, when combined, account for 45% of Stock's revenues; they have fallen by 21% and 27%, respectively.
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Stock's results were offset by strong organic growth in the U.S. plumbing and heating business, improved performance ...