Economy Watch

Retail Sales Up
The International Council of Shopping Centers and Goldman Sachs reported its chain-store sales index for the week ending on May 28, 2011 rose 0.4% from the prior week, the first week-over-week increase in five weeks.

Gas Prices Drop
The Energy Department announced that for week ending May 30, 2011, the average price of US gasoline fell to $3.794 a gallon, down from $3.849 per gallon week earlier.

Diesel prices fell to an average $4.00 per gallon, down from $4.06 last week.

Of note is a continued decrease in US reliance of imported oil since peaking in 2005. By the broadest standard, US dependence on imported oil fell from 60.3% in 2005 to 49.3% in 2010, a level below 50% not seen since 1997. A narrower measure saw US dependence on imported oil fall from 66.3% in 2005 to 62.0% in 2010. The chief reason for the decline is a significant decrease in consumption, in part due to the recession, as well as greater processing efficiency in turning out more gasoline and other light oil products per barrel, increased US crude production, and greater production of ethanol, biofuelds, and other alternate fuels.

Shoppertrak Retail Sales
For the week ended May 21, 2011, ShopperTrak's National Retail Sales Estimate was $96.432 billion, up 3.0% from last week's $94.377 billion, and up 6.0% from same week last year. Memorial Day sales are credited for the jump, but sales are expected to sag a bit before coming back for Father's Day holiday.

Mortgage Rates Drop Again
Bankrate.com reported that the average conforming 30-year fixed mortgage rate fell to 4.75%, down from last week's 4.77%, according to its weekly national survey ending May 25, 2011. It also reported that the average 15-year fixed mortgage rate was 3.93%, down from 3.95% last week.