11/15: MetroIntelligence Economic Update by P. DUFFY

October Producer Price Index up just 1.1 percent year-on-year, smallest rise in 3 years

The Producer Price Index for final demand increased 0.4 percent in October after falling 0.3 percent in September, and was up 1.1 percent year-over-year, for the smallest annual rise since October 2016.  The index for final demand less foods, energy, and trade services inched up 0.1 percent in October after no change in September, and was up 1.5 percent year-on-year.

https://www.bls.gov/news.release/ppi.nr0.htm

 

Atlanta Fed:  November year-ahead inflation expectations rise to 2.0 percent

Firms’ year-ahead inflation expectations increased to 2.0 percent, on average, for the November survey of businesses.  Current economic environment: Sales levels and profit margins compared to “normal times” improved somewhat. Year-over-year unit cost growth went unchanged at 1.7 percent, on average.

https://www.frbatlanta.org/research/inflationproject/bie

 

2018 single-family lot prices rose 4.4 percent, and reached a record high

NAHB:  An analysis of Census Data showed that median single-family lot prices outpaced inflation once again (4.4% vs 2.4%) and reached a new record high in 2018, with half of the lots selling at or above $49,500. The most dramatic rise in lot values is observed in the West South Central division where median lot values more than doubled since the housing boom years, whereas the highest median lot prices were found in the Pacific region, reaching $87,000.

http://eyeonhousing.org/2019/11/lot-values-hit-record-highs/