The Standard & Poor’s / Case-Shiller 20-city housing price index dropped 18.1% from April 2008 to April 2009. It was the third straight month the index didn’t post record drops, indicating that the slump in home values might be easing.

The Institute for Supply Management reported the monthly index of manufacturing activity rose to 44.8 in June from 42.8 in May. Though any reading below 50 signals contraction, it was the sixth consecutive monthly increase from a record low of 32.9 in December.

The Commerce Department reported total construction spending fell 0.9% in May. Economists had expected a 0.5% decline. Meanwhile, construction spending in April was downwardly revised to a 0.6% gain. Also, a March increase of 0.4% was revised to a 0.4% drop.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 0.1% to 90.7 in May from an upwardly revised 90.6 in April. It was the fourth consecutive monthly increase after the index hit a record low in January.

The Commerce Department reported factory orders rose 1.2% in May, after a revised 0.5% increase in April. It was the first back-to-back increase in nearly a year.

The Labor Department reported the jobless rate rose to 9.5% in June from 9.4% in May. That’s the highest level since August 1983.

Upcoming on the economic calendar are reports on consumer credit on July 8 and wholesale trade on July 9.

The Commerce Department announced Wednesday that gross domestic product — the total output of goods and services produced in the U.S. — decreased at an annual rate of 6.1% in the first quarter of 2009. This follows a 6.3% decline in the fourth quarter of 2008. It marked the worst two-quarter performance since 1957-58. One positive aspect to the GDP numbers was a 2.2% increase in consumer spending.

The Labor Department said initial claims for unemployment benefits fell in the week ending April 25 to 631,000 from the previous week’s upwardly revised figure of 645,000. For the week ending April 18, the number of people continuing to claim jobless benefits increased 133,000 to 6.271 million.

The Reuters/University of Michigan consumer sentiment index rose in April to 65.1 from 57.3 in March. Economists had forecasted a reading of 61.9. It was the highest reading since September 2008 and the biggest one-month gain since October 2006. The index has rebounded significantly from a 28-year low of 55.3 in November 2008.

The Institute for Supply Management reported the monthly index of manufacturing activity rose in April to 40.1 from 36.3 in March. Though any reading below 50 signals contraction, it was the fourth consecutive monthly increase from a record low of 32.9 in December.

Upcoming on the economic calendar are reports on construction spending and pending home sales on May 4, consumer credit on May 7 and wholesale trade on May 8.

According to the ICSC-Goldman Sachs index, retail sales rose 0.6% in the week ending April 4. This follows a strong 1.1% growth in the week ending March 28. On a year-on-year basis, retailers saw sales decline by 0.3% from the week ending April 4.

According to the Federal Reserve, consumer debt fell in February by $7.48 billion, or 3.5% at an annual rate. Economists had forecast consumer debt would drop $3 billion in February. Total consumer credit debt in February was $2.56 trillion. In a separate report, Moody’s Investors Service stated that uncollected credit card debt rose to 8.82% in February, the most in 20 years.

Wholesale sales rose in February for the first time in eight months. Overall wholesale sales increased 0.6% and the sale of wholesale durable goods jumped 2%. Meanwhile, wholesalers reduced their inventories by 1.5% in February. The decline was more than twice as much as the 0.7% forecasted and the steepest since recordkeeping began in January 1992.

The Labor Department said initial claims for unemployment benefits fell by 20,000 to 654,000 from the previous week’s revised figure of 674,000. The decrease in the week ending April 4 was better than expected. Economists had anticipated claims to drop to 660,000. The number of people continuing to claim jobless benefits rose to 5.84 million from 5.75 million in the prior week.

Upcoming on the economic calendar are reports on retail sales on April 14, housing market index on April 15 and housing starts on April 16.

The National Association of Realtors (NAR) reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 2.1% to 82.1 in February. The reading is 1.4% below February 2008 when it was 83.3.

NAR’s housing affordability index rose 0.9% to a record high of 173.5 in February from an upwardly revised index of 172.6 in January. The index is 36.3% higher than a year ago and is the most favorable since tracking began in 1970.

The Institute for Supply Management reported the monthly index of manufacturing activity rose in March to 36.3 from 35.8 in February. Though any reading below 50 signals contraction, it was the third consecutive monthly increase from a record low of 32.9 in December. The group’s gauge of new orders rose significantly to 41.2 in March from 33.1 in February. The reading — the first time the indicator has been above 40 in seven months — points to further improvement in durable goods orders.

The Conference Board reported that its consumer confidence index rose slightly to 26 in March from an upwardly revised 25.3 in February. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Commerce Department reported total construction spending fell 0.9% in February. It was the fifth consecutive monthly decline but much less than the 1.8% decrease economists had anticipated.
On Friday, the Labor Department reported that the nation’s unemployment rate increased to 8.5% in March from 8.1% in February. Businesses cut 663,000 jobs in March. This is the nation’s highest unemployment rate since November of 1983.

Upcoming on the economic calendar are reports on consumer credit on April 7, wholesale trade on April 8 and international trade on April 9.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending March 20 increased 32% to 1,159.4 from 876.9 the previous week. Purchase volume rose 4.2% to 267.8 from 257.1 the previous week, while refinancing applications jumped 42% to 6,363.2 from 4,497.6.

The Commerce Department reported Wednesday that orders for durable goods, items expected to last three or more years, jumped 3.4% in February. It was the strongest one-month gain in 14 months and the report breaks a record six consecutive months of decline. Economists had anticipated orders for durable goods to fall 2%. Among the areas of strong growth were orders for heavy machinery, up 13.5%, and demand for computers, up 10.1%.

New home sales unexpectedly rose 4.7% in February to a seasonally adjusted annual rate of 337,000 units, according to a report by the Commerce Department. Analysts had expected a drop to 300,000 units in February. Also, the results for January were revised upward to 322,000. Nevertheless, that figure represents the slowest monthly pace since record keeping began in 1963.

On Thursday, the Commerce Department announced its final revision to the fourth quarter Gross Domestic Product (GDP). It showed the U.S. economy decreased at an annual rate of 6.3% in the fourth quarter of 2008. It was the lowest pace since the first quarter of 1982, when output contracted 6.4%. For all of 2008, the economy grew 1.1%.

Upcoming on the economic calendar are reports on consumer confidence on March 31, pending home sales on April 1 and factory orders on April 2.