MetroIntelligence Economic Update by P. DUFFY
Existing home sales rise 3.1 percent in January but down 1.7 percent year-on-year
Existing-home sales expanded 3.1% in January to a seasonally adjusted annual rate of 4.00 million. Sales declined 1.7% from the prior year. The median existing-home sales price climbed 5.1% from January 2023 to $379,100 – the seventh consecutive month of year-over-year price gains. The inventory of unsold existing homes increased 2.0% from one month ago to 1.01 million at the end of January, or the equivalent of 3.0 months’ supply at the current monthly sales pace.
https://www.nar.realtor/newsroom/existing-home-sales-rose-3-1-in-january
February economic output index slips to 51.4 but still in growth mode
At 51.4, the headline February S&P Global Flash US PMI Composite Output Index fell from 52.0 in January and signaled a marginal expansion in business activity midway through the first quarter of 2024. Nonetheless, the pace of expansion was the second-fastest since July 2023 as manufacturers and service providers recorded growth in output. Although service sector output rose for a thirteenth straight month, the sector lost growth momentum.
Manufacturing firms meanwhile registered a renewed rise in production.
https://www.pmi.spglobal.com/Public/Home/PressRelease/36cedd38091e42eda51ffea4468c4c03
Federal Reserve meeting minutes show they’re in no hurry to reduce interest rates
In support of the Committee’s goals to achieve maximum employment and inflation at the rate of 2 percent over the longer run, members agreed to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. Members concurred that, in considering any adjustments to the target range for the federal funds rate, they would carefully assess incoming data, the evolving outlook, and the balance of risks. Members agreed that they did not expect that it would be appropriate to reduce the target range until they have gained greater confidence that inflation is moving sustainably toward 2 percent.
https://www.federalreserve.gov/monetarypolicy/fomcminutes20240131.htm
