MetroIntelligence Economic Update by P. DUFFY
ADP: Private sector job growth slips to 307,000 in November
Private-sector employment increased by 307,000 in November, versus 404,000 jobs in October and 161,000 jobs in November 2019. We’ll get a fuller read on the November job market on Friday, when the BLS releases their figures.
Purchase loans up 9 percent and 28 percent year-on-year in weekly report
The Market Composite Index decreased 0.6 percent on a seasonally adjusted basis from one week earlier, with purchase loans up 9 percent (and up 28 percent year-on-year) and refinance activity falling 5 percent (but up 102 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 2.92 percent.
Construction spending up 1.3 percent in October and 3.7 percent year-on-year
Construction spending during October 2020 was estimated at a seasonally adjusted annual rate of $1,438.5 billion, 1.3 percent above the revised September estimate of $1,420.4 billion. The October figure is 3.7 percent above the October 2019 estimate of $1,386.8 billion. During the first ten months of this year, construction spending amounted to $1,189.6 billion, 4.3 percent above the $1,140.4 billion for the same period in 2019.
Manufacturing sector index slips 1.8 points to 57.5, but still in expansion mode
The November Manufacturing PMI® registered 57.5 percent, down 1.8 percentage points from the October reading of 59.3 percent. This figure indicates expansion in the overall economy for the seventh month in a row after a contraction in April, which ended a period of 131 consecutive months of growth. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories, but absenteeism, short-term shutdowns to sanitize facilities and difficulties in returning and hiring workers are causing strains that will likely limit future manufacturing growth potential.