MetroIntelligence Economic Update by P. DUFFY
Construction spending up 0.3 percent in September and 1.5 percent year-on-year
Construction spending during September 2020 was estimated at a seasonally adjusted annual rate of
$1,414.0 billion, up 0.3 percent from August and 1.5 percent higher year-on-year. During the first nine months of this year, construction spending amounted to $1,058.5 billion, up 4.1 percent year-on-year.
October manufacturing index rises 3.9 points to highest level in over two years
The October Manufacturing PMI® registered 59.3 percent, up 3.9 percentage points from the September reading of 55.4 percent and the highest since September 2018 (59.3 percent). This figure indicates expansion in the overall economy for the sixth month in a row after a contraction in April. Panel sentiment was optimistic (two positive comments for every cautious comment), a slight decrease compared to September.
Inflation tracker PCE price index up 0.2 percent in September and 1.4 percent year-on-year
The Federal Reserve-preferred inflation indicator PCE price index increased 0.2 percent in September and 1.4 percent year-on-year. Excluding food and energy, the PCE price index increased 0.2 percent in September and 1.5 percent year-on-year.
Personal spending rose more than incomes in September, leading to a decline in the savings rate
Personal income increased 0.9 percent in September, rebounding from the decline of 2.5 percent in August. Personal consumption expenditures (PCE) increased 1.4 percent, building on August’s rise of 1.0 percent. The personal savings rate slipped to 14.3 percent, which is down sharply from over 33 percent in April but up from 8.3 percent in February, prior to the pandemic.