MetroIntelligence Economic Update by P. DUFFY
Home Building Geography Index shows more new home construction outside of big cities
Between the first and third quarters of 2020, the market share for single-family construction in urban core areas fell from 18% to 17.2%. Small metro core and suburb single-family market share increased from 37.7% to 38.2%. Apartment construction in large metro core and suburbs fell from 67.1% to 65.2%. Apartment construction in small metro core areas increased in market share from 21% in the first quarter to 22.4% in the third quarter.
Initial unemployment claims dip 10.5 percent, continued claims fall 9.3 percent
In the week ending November 28, initial unemployment claims were 712,000, a decrease of 75,000, or 10.5 percent, from the previous week’s revised level. Continuing claims during the week ending November 21 were 5,520,000, a decrease of 569,000, or 9.3 percent, from the previous week’s revised level. The total number of people claiming benefits in all programs for the week ending November 14 was 20,163,477, a decrease of 349,633, or 1.7 percent, from the previous week.
November service sector index slips 0.7 points to 55.9 percent, but still well in expansion mode
The November Services PMI™ registered 55.9 percent, 0.7 percentage point lower than the October reading of 56.6 percent. This reading represents a sixth straight month of growth for the services sector. Respondents’ comments are mixed about business conditions and the economy. Most companies are cautious as they navigate operations amid the pandemic and the aftermath of the U.S. presidential election.
November global economic index signals expansion for fifth straight month
The J.P.Morgan Global Composite Output Index posted 53.1 in November, slightly below October’s 26-month high of 53.3. The headline index has signalled expansion for five successive months. Growth accelerated in the consumer goods and investment goods categories,but slowed in intermediate goods, business services and financial services. Consumer services remained a negative spot, seeing output contract for the tenth month in a row.