MetroIntelligence Economic Update by P. DUFFY
Construction spending slips 0.7 percent in August but up 8.5 percent year-on-year
Construction spending during August 2022 was estimated at a seasonally adjusted annual rate of $1,781.3 billion, 0.7 percent below the revised July estimate of $1,793.5 billion. The August figure is 8.5 percent above the August 2021 estimate of $1,641.6 billion. During the first eight months of this year, construction spending amounted to $1,183.8 billion, 10.9 percent above the $1,067.4 billion for the same period in 2021.
Manufacturing sector index falls to lowest level since May 2020 but still growing
The September Manufacturing PMI® registered 50.9 percent, 1.9 percentage points lower than the 52.8 percent recorded in August and the lowest since May 2020, when it registered 43.5 percent. Markedly absent from panelists’ comments was any large-scale mentioning of layoffs; this indicates companies are confident of near-term demand, so primary goals are managing medium-term head counts and supply chain inventories.
Inflation tracker PCE price index up 0.3 percent in August and 6.2 percent year-on-year
The Fed-preferred inflation gauge PCE Price Index rebounded from a decline of 0.1% to a rise of 0.3% between July and August, and was up 6.2% year-on-year, which was higher than forecast. ‘Core’ inflation, which strips out more volatile costs for food and energy, jumped from 0.0% to 0.6% between July and August and was up 4.9% year-on-year.