by Calculated Risk on 7/01/2009 09:48:00 PM

A quick summary ...

California starts issuing IOUs tomorrow. From the SacBee: Furlough Fridays back - now three days a month

With California on the verge of issuing IOUs, Gov. Arnold Schwarzenegger moved to conserve cash Wednesday by ordering state workers to take a third day of unpaid furlough each month ... [about 14 percent] pay cut for state workers ...

Auto sales were still below 10 million units (SAAR):

Click on graph for larger image in new window.

This graph shows the historical light vehicle sales (seasonally adjusted annual rate) from the BEA (blue) and an estimate for June (red, light vehicle sales of 9.69 million SAAR from AutoData Corp).

Construction spending declined in May

This graph shows private residential and nonresidential construction spending since 1993 through May. Note: nominal dollars, not inflation adjusted.

"Spending on private construction was at a seasonally adjusted annual rate of $649.2 billion, 1.0 percent below the revised April estimate of $655.6 billion."

Residential construction spending fell further in May, and nonresidential spending was up a little (because of private spending on power), but will probably decline sharply over the next two years.

The ISM June 2009 Manufacturing Report On Business® showed continued contraction.

Employment reports from ADP, Challenger and Monster were released. The BLS report will be released tomorrow (Thursday) because of the holiday on Friday.

The NAR Pending Home Sales Index increased.

The MBA reported refinance applications were off 30%.