Economic Reports 08/02/07

Summary: Rate ante unraised. Initial claims improving with fewer
layoffs.

Factory Orders up, but non defense capital goods down with an inventory backup in the chain.

BOE & ECB Rate Announcements

No surprises, BOE steady at 5.75%; ECB steady at 4%. ECB should raise at
next meeting.

Initial Claims 07/28 +4K 307K vs prior 303K Full Report

Inside the number: prior revised up 2K. 4 week MA -3.5K at 3.055K.
Continuing unemployment -16K at 2.52M; 4 week MA -9.25K at 2.54M.

STATES WITH AN INCREASE OF MORE THAN 1,000

State Change State Supplied Comment
IL +2,564 manufacturing

Factory Orders Jun +0.6 vs prior -0.5% Full Report

Inside the number: Shipments -0.6% vs prior +0.8%; Non defense capital
goods ex aircraft:

New Orders -0.7%; YTD -1.6%
Shipments -0.4%; YTD -1.3%

Inventories by stage of fabrication:

materials & supplies: durable -0.4%; non durable +0.9%
work in process: durable +0.3%; non durable -0.1%
finished goods: durable +0.5%; non durable +0.6%