1/7: MetroIntelligence Economic Update by P. DUFFY

November construction spending up 0.6 percent from October and 4.1 percent year-on-year

Construction spending during November 2019 was estimated at a seasonally adjusted annual rate of $1,324.1 billion, up 0.6 percent from October and 4.1 percent year-on-year. During the first eleven months of 2019, construction spending amounted to $1,201.6 billion, down 0.8 percent for the same time period of 2018.



December manufacturing index dips 0.9 point to lowest reading in over 10 years

The December PMI® index for the U.S. manufacturing sector registered 47.2 percent, a decrease of 0.9 percentage point from the November reading of 48.1 percent, and the lowest reading since June 2009 (50 marks the split between growth and decline).  December was the fifth consecutive month of PMI® contraction, at a faster rate compared to the prior month.



Federal Reserve December meeting minutes reveal improved economic forecast

The projection for U.S. real GDP growth prepared by the staff for the December FOMC meeting was revised up a little for the second half of 2019 relative to the previous projection. The forecast for real GDP growth over the medium term was also revised up a bit, on balance, primarily in response to a somewhat higher projected path for equity prices. Growth of real GDP in 2020 would run at or slightly above 1.9 percent, the median of current estimates of its longer-run rate.