GLOBAL ECONOMIC REPORTER

Here is a summary of important data releases this week regarding the performance of the U.S. economy:

• Manufacturing Activities Declined at a Slower Pace in July.  The Institute of Supply Management (ISM)’s Primary Manufacturing Index (PMI) increased 4.1 points to 48.9.  While the reading being below 50 suggests contraction, the increase from last month shows improvement in manufacturing activities.  Indices for new orders, production, and supply deliveries showed growth for the month of July.  Indices for employment and inventories showed contraction, but the pace of decline has been slower.   
• Service Industries Remain Weak.  The ISM’s Non-Manufacutring Index (NMI) declined 0.6 point to 46.4 in July.  July marks the 10th consecutive month of decline in the service sector.  Most indices(business activity, new orders, employment, and etc.) showed slight contraction in July. 
• Mortgage Activities Picked up Pace in Latest Survey.  The Mortgage Bankers Association (MBA)’s weekly survey showed increased mortgage application activities.  The Market Composite Index, which measures mortgage loan application volume, increased 4.4% from one week earlier after seasonal adjustment.  The Refinance Index increased 7.2% from the previous week and has risen 35% above the recent low at the end of June. 
• U.S. Personal Income Down in June but Consumption Expenditure Up.  The Burea of Economic Analysis reported that Disposable Personal Income (DPI) decreased $143.8 billion or 1.3% in June from previous month.  In May, DPI increased $168.7 billion or 1.6%.  Personal Consumption Expenditure (PCE) rose, however, by $41.4 billion or 0.4% in June.  PCE also increased in May by $9.0 billion or 0.1%.  The decrease in personal income in June was in part due to provisions in the American Recovery and Reinvestment Act of 2009 that boosted transfer payments more in May than in June.