• The Conference Board Consumer Confidence
• The Conference Board index of consumer confidence dipped modestly again in April, in line with expectations. The index came in at 62.3, down from April's upwardly revised 65.9 (previously 64.5). With the exception of March 2003, the index is at its lowest level since October 1993. The present situation component of the index was responsible for the decline, as the expectations component rose marginally. Assessments of labor markets conditions fell.

• GDP
• Although economic growth was very weak in the first quarter-just 0.6% at an annualized pace-this was better than the consensus expectation of 0.2% growth. Over the past year, real GDP has increased 2.5%. Growth was also 0.6% in the fourth quarter of 2007. Compared with the fourth quarter, investment in inventories was a positive for growth. This was offset by stronger imports, a decline in nonresidential construction, and weaker growth in consumer spending. Although output expanded in the first quarter, the economy is likely in recession as the weakness spreads further beyond housing.

• Personal Income
• Consumers are cautious in their spending, as there is growing uncertainty surrounding the outlook for the economy and their incomes. In March, nominal spending increased 0.4%, up from February's 0.1% gain. The bulk of March's gains in spending was price- driven, as real spending increased a tepid 0.1%. Personal income increased 0.3%, down from February's 0.5% gain. The saving rate fell modestly to 0.2% from 0.4% the prior month.

• FOMC Meeting
• The Federal Open Market Committee cut the fed funds target rate by 25 basis points to 2%. This is the lowest the target rate has been since late 2004. The press statement cited weakness throughout the economy and stress in financial markets. It noted higher inflation, but also said that inflation should moderate in the near term. The statement made no reference to upside or downside risks to growth. Two members voted against the rate cut, favoring no action. The Fed also reduced the discount rate 25 basis points to 2.25%.

• Agricultural Prices
• The All Farm Products Index of Prices Received by Farmers decreased 1.4% in April from March. The crop index is unchanged, but livestock prices overall eased by 3.1%. Producers received lower prices for eggs, strawberries, cattle and wheat. Corn, lettuce, onions and soybeans fetched higher prices. The index is up 8.3% from April of last year, a much smaller year- over-year increase than that seen in previous months. Farmers paid 1.7% more for the means of production than last month and 13% more than a year ago. Seed, diesel fuel, feed grains, and hay and forages were more expensive, while feeder pigs, feeder cattle, feed supplements and complete feeds prices eased.

• Construction Spending (C30)
• Construction spending decreased by 1.1% in March, after the previous month's 0.4% gain. Private construction declined by 1.7%, led by a 4.6% decline in residential construction. Public construction increased by 0.6%.

• Case-Shiller Monthly Home Price Indices
• Both the 10-city and 20-city composite S&P/Case- Shiller house price indices declined further in February. The 10-city composite fell 2.9% and the 20- city dropped 2.7%. The 10-city composite is down 13.6% over the past year, setting yet another record for the largest year-over-year decline since the index began in 1988. The 20-city composite was down 12.7% over the past year, also a record decline. Prices fell in all 20 metro areas in February. The pace of the house price declines continues to accelerate.

• MBA Mortgage Applications Survey
• The Mortgage Bankers Association's market composite indices finished down for the week ending April 25, a particularly sharp drop in a week in which interest rates barely moved. The market index is down 11.1% from the previous week. The largest drop was again in the refinance index, which fell 16.7% compared with the week before, though the purchase index also fell sharply by 4.8% from the previous week. Not surprisingly, the fall in mortgage applications punctuated a week in which news continued to show declining home prices.

• Layoffs
• The number of workers affected by job cuts rose to 90,015 in April, up from 53,579 in March. This was the highest number of cuts since September 2006 and 27% higher than one year ago. Financial services led all other industries in announced cuts, followed by telecommunications, autos, pharmaceuticals and computers.

• Jobless Claims
• Initial claims increased by 35,000 to 380,000, erasing all of the prior week's surprising drop. Initial claims have been trending higher, indicating that businesses are gradually increasing the pace of layoffs.

• Chain Store Sales
• Chain store sales rose 0.9% in the week ending April 26, according to the International Council of Shopping Centers, the second good-sized gain in three weeks. Year-over-year growth rose to 1.9% but remained below 2% for the eighth week. Sales overcame drags from adverse weather in many parts of the country, the timing of religious holidays, and record gasoline prices.

• Oil and Gas Inventories
• rude oil inventories rose by 3.8 million barrels for the week ending April 25, according to the Energy Information Administration, compared with expectations of a 0.3 million barrel build. Gasoline inventories fell by 1.5 million barrels, below expectations of a 0.9 million barrel decline. Distillate supplies rose by 1.1 million barrels versus expectations of a 0.3 million barrel decline. Refinery operating capacity moved slightly lower to 85.4% from 85.6%. This report is bearish.

• Weekly Natural Gas Storage Report
• Underground storage of natural gas rose by 86 billion cubic feet during the week ending April 25, above consensus expectations of a 75 bcf build. Total underground storage was 1,371 bcf as of April 25, 255 bcf less than a year ago and 3 bcf below the five-year average for this time of year.

Source: Economy.com 2008