MetroIntelligence Economic Update by P. DUFFY
Construction spending up 1.2 percent in April and 7.2 percent year-on-year
Construction spending during April 2023 was estimated at a seasonally adjusted annual rate of $1,908.4 billion, 1.2 percent above the revised March estimate of $1,885.0 billion. The April figure is 7.2 percent above the April 2022 estimate of $1,780.9 billion. During the first four months of this year, construction spending amounted to $566.7 billion, 6.1 percent above the $533.9 billion for the same period in 2022.
May manufacturing sector index slips further to 46.9 percent
The May Manufacturing PMI® registered 46.9 percent, 0.2 percentage point lower than the 47.1 percent recorded in April. Regarding the overall economy, this figure indicates a sixth month of contraction after a 30-month period of expansion. Panelists’ comments again registered a 1-to-1 ratio regarding optimism for future growth and continuing near-term demand declines. Supply chains are prepared and eager for growth, as panelists’ comments and the data support reduced lead times for their companies’ more important purchases.
Case-Shiller index rebounds for second consecutive month, up 0.7 percent year-on-year
After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.4%, while the 10-City Composite gained 0.6% and 20-City Composites posted an increase of 0.5%. The National Index now stands only 3.6% below its June 2022 peak. The U.S. National Home Price NSA Index recorded a 0.7% annual gain in March 2023. The 10-City and 20-City Composites reported year-over-year decreases of -0.8% and -1.1%, respectively.