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• Biggest dive for commodities in 28 years
• Commodities prices suffered their largest monthly drop in 28 years in July as crude oil prices nose-dived more than $20 from an all-time high of $147.27 a barrel.
• The Jefferies-Reuters CRB index, a global commodities benchmark, lost 10 per cent, its largest monthly decline since it fell 10.5 per cent in March 1980, amid worries about lower economic growth damping demand for raw materials.
• Natural gas - down 31.4%
• Corn - down 19.2%
• Petroleum - down 9.7%
• Copper - down 5.2%

• Global Business Confidence
• The global economy continues to skirt recession according to the business confidence survey. While the U.S., European and Japanese economies are contracting moderately according to the survey results, the Asian economy continues to experience growth that is near its potential and South American growth is just below potential. Pricing pressures remain very elevated and businesses remain anxious about their weak sales. Hiring intentions and investment spending are soft but remain stable.

• The Conference Board Consumer Confidence
• The Conference Board index of consumer confidence rebounded slightly in July, rising to 51.9 from June's 51.0 (revised from 50.4). The expectations component of the index led the gain, while the component measuring sentiment about the present situation fell fractionally. Assessments of labor market conditions deteriorated further.

• GDP
• Real GDP increased 1.9% in the second quarter at an annualized rate, below the consensus expectation for 2.4% growth. Over the past year, real GDP has increased 1.8%. Growth was 0.9% in the first quarter, revised downward from 1% last month. Relative to the first quarter, trade and consumer spending were positives for growth; there was also a smaller decline in homebuilding. Somewhat offsetting these positives was a large drop in inventories. Thursday morning's release also included the annual revisions to the GDP data. These show that output fell in the fourth quarter of 2007. Average annual growth for 2004 to 2007 was revised downward by 0.1 of a percentage point, to 2.6%. The data point to an economy that is struggling but still expanding.

• Agricultural Prices
• The All Farm Products Index of Prices Received by Farmers rose 1.9% in July from a month earlier. The crops index increased 1.6% and livestock prices were up 0.7% Farmers received higher prices for cattle, soybeans, broilers and sweet corn. Prices fell for eggs, wheat, tomatoes and cucumbers. The farm price index is 16% higher than in July 2007. Food commodities prices were up 1.3% on the month and 17% for the year. The July Index of Prices Paid by Farmers was up 1.1% this month from June and is 18% higher than a year ago. Farmers paid more for potash, phosphate materials, nitrogen fertilizers, mixed fertilizer and diesel fuel. Feed concentrates, feeder pigs, trucks and other machinery were less expensive.

• Monster Employment Index
• The Monster Employment Index recorded a sharp decline in July, dropping six points to 157. Seasonal factors likely played a part in the decrease. The index fell by 14.2% from a year ago, a greater rate of annual decline than June's 12.4% fall, which indicates further weakening in the nation's labor market. In addition, all nine census regions reported a decrease in online job availability over the month, as did 16 of the 20 industries tracked by the index.

• Employment Cost Index
• Employer costs rose 0.7% in the second quarter, matching the gain of the first quarter. Wages and salaries increased 0.7%, while benefit costs rose 0.6%. These increases extend the moderation in labor compensation, a trend that is expected to persist throughout the remainder of the year. Thursday's report is good news from a policy perspective, since tame wage pressures will enable the Federal Reserve to hold rates unchanged.

• Jobless Claims
• Initial claims for unemployment insurance rose sharply to 448,000 in the week ending July 26, compared with the previous week's 404,000. The increase puts claims at their highest point since 2003. This surge in initial claims overstates the weakness in the labor market, as the government's recently extended unemployment benefits. Not all unemployed workers file for benefits, therefore, the increased awareness brought on by the extension could be leading those laid-off to file for the first time. That said, the labor market remains fragile and the environment for hiring remains restrictive.

• Case-Shiller Monthly Home Price Index
• House prices declined in May. Both the 10-city and 20-city composite S&P/Case-Shiller house price indices posted record year-ago declines, although each posted a smaller percentage decline on a month-ago basis than in April. The 10-city composite index dropped 16.9% from March 2007 and the 20-city composite fell by 15.8%. However, from April to May, the 10-city index dropped by about 1%, a smaller monthly decline than April's 1.5% fall. The 20-city composite also slowed over the month, dropping a modest 0.9%. Prices in 13 metro areas fell from a month ago.

• MBA Mortgage Applications Survey
• The MBA market composites finished down for the week ending July 25. The market index fell by 14.1% for the week. Most of this fall was due to the refinance index, which fell by 22.9%, but the purchase index also lost significant ground, with a 7.8% loss. Activity on the demand side of mortgage markets remains at a near comatose level because of the continued deflationary trend and relatively high contract rates.

• Chain Store Sales
• Chain store sales increased 1.2% in the week ending July 26 according to the ICSC. This solid gain followed four consecutive small gains and was the largest weekly gain since early June. However, year- over-year growth rose only slightly to 2.6% as sales rose strongly in the comparable week last year. Nonetheless, growth was the strongest of the year. Store traffic reportedly improved except for apparel retailers.

• Natural Gas Storage Report
• Working gas in underground storage rose by 65 billion cubic feet during the week ending July 25, below consensus expectations of a 69 bcf build. At 2,461 bcf, inventories were 357 bcf lower than a year ago and 12 bcf below the five-year average for this time of year.

• Oil and Gas Inventories
• Crude oil inventories fell by 0.1 million barrels for the week ending July 25, according to the Energy Information Administration, less than expectations of a 1.6 million barrel decline. Gasoline inventories fell by 3.5 million barrels, contradicting estimates of a 0.2 million barrel build. Distillate supplies rose by a robust 2.4 million barrels, surpassing expectations. Refinery operating capacity inched higher to 87.2% from 87.1%. Total domestic petroleum demand rose. This report is bullish.

Source: Economy.com 2008