Economy Highlights (20th July, 2011)

US - Mortgage applications fell 5.2% last week on refinancing

Mortgage applications in the US fell for a third straight week, led by the biggest drop in refinancing since the end of March. The Mortgage Bankers Association’s index declined 5.2% in the period ended 1 July from the prior week as falling home prices are making it harder for homeowners to refinance current mortgages. (Bloomberg)

US - Service industries expanded at slower pace in June

Service industries in the US expanded at a slower pace in June, a sign the economy cooled at the end of the first half of 2011. The Institute for Supply Management’s index of non-manufacturing businesses decreased to 53.3, less than the projected 53.7, from 54.6 in May. (Bloomberg)


EU - Spain industrial production fell for third month in May

Spanish industrial production fell for the third month in May as the economy struggled to emerge from a three-year slump. Output at factories, refineries and mines fell 0.4% from a year earlier. (Bloomberg)


EU - Germany factory orders unexpectedly rose, led by domestic demand

Factory orders in Germany unexpectedly increased in May, led by domestic demand for investment goods such as machinery. Orders, adjusted for seasonal swings and inflation, increased 1.8% from April, when they surged a revised 2.9%. (Bloomberg)


EU - Ireland may be next to face junk as Moody's cut Portugal

Ireland’s credit rating may be cut to junk by Moody’s after Portugal yesterday lost its investment grade rating on concern the country will need to follow Greece in seeking a second bailout. Moody’s, which slashed Portugal to Ba2 from Baa1, in April lowered Ireland’s credit rating to the lowest investment grade Baa3 and left country’s outlook on negative. (Bloomberg)