WEEKLY ECONOMIC NEWS

The trade deficit jumped by 5.3% to an all-time high of $68.5 billion in January, the Commerce Department reported March 9. Higher oil prices and rising imports of cars, auto parts and wines contributed to the record increase.

Worker productivity, a key determinant of rising living standards, fell 0.5% in fourth quarter 2005, the first time that has happened in more than four years, the Labor Department said March 7. Meanwhile, wages rose at a 3.3% pace over the same period, the fastest gain in a year. Analysts said the decline in productivity mainly reflected a temporary slowdown in overall economic growth caused by the hurricanes and surging energy prices.

Reflecting a big drop in demand for commercial and military airplanes, orders to U.S. factories for manufactured goods dipped 4.5% in January, the largest amount in more than five years, the Labor Department reported March 6. Excluding the volatile transportation sector, factory orders posted a 1.6% increase, the best showing in five months.

The number of Americans filing new claims for unemployment benefits unexpectedly rose for the week ending March 4 to 303,000. It's the first time this year that jobless claims have topped 300,000.

Interest rates for 30-year mortgages for the week ending March 4 jumped to their highest level since September 2003, Freddie Mac said March 9.

(Courtesy of Louise Rose, ELB Mortgage Brokers)