Economy Watch

Economically speaking, there was good news and bad news in late July and early August.

First, the good news:

* Fixed-rate mortgages dropped to an average of 8.05%--lowest since July, 1973.

* Spending on durable goods items, such as autos and appliances, increased 2.1%; autos accounted for most of the rise.

* Factory orders jumped 2.3%--the highest increase in 11 months.

* Payroll jobs in July took their greatest leap upward in more than two years.

* Non-farm productivity rose at a projected annual rate of 2.3% in the second quarter.

Now, the bad news:

* The index of leading indicators, designed to predict economic activity in six to nine months, fell 0.2%. The drop followed gains in March and April.

* Personal income remained unchanged.

* Americans turned to their savings to support spending, reducing the nation’s savings rate from 5.4% in May to 4.8% in June.

* The unemployment rate for July dipped only slightly to 7.7%.

* Non-farm hourly wages adjusted for inflation fell 0.7% in the second quarter.

Source: Associated Press