MetroIntelligence Economic Update by P. DUFFY
Employment growth underwhelms by 210,000 in November, unemployment rate falls to 4.2 percent
Total nonfarm payroll employment rose by 210,000 in November, and the unemployment rate fell by 0.4 percentage point to 4.2 percent. Notable job gains occurred in professional and business services, transportation and warehousing, construction, and manufacturing. Employment in retail trade declined over the month.
Service sector index rises to all-time high in November as demand exceeds supply
In November, the Services PMI registered another all-time high of 69.1 percent, 2.4 percentage points above October’s reading of 66.7 percent, the former all-time high. Demand continues to outpace supply that has been impacted by capacity constraints, shortages of labor and materials, and logistical challenges. This has also caused demand-pull inflation that is affecting overall business conditions.
Redfin: Record-low inventory leads to higher prices and quick sales
The number of homes for sale hit an all-time low during the week ending November 28, suggesting a difficult winter is in store for homebuyers. During the four-week period, sustained demand pushed the median home price to another record high, and a third of homes sold in one week or less.