MetroIntelligence Economic Update by P. DUFFY
May construction spending dips 2.1 percent from April but up 0.3 percent year-on-year
Construction spending during May 2020 was estimated at a seasonally adjusted annual rate of $1,356.4 billion, down 2.1 percent from April but up 0.3 percent year-on-year. During the first five months of this year, construction spending amounted to $543.2 billion, up 5.7 percent for the same period of 2019.
ADP: Private sector added another 2.4 million jobs in June
Private-sector employment increased by 2.369 million in June, on a seasonally adjusted basis. This compares with a gain of 3.065 million jobs in May in 165,000 jobs in June 2019. So far in May and June, 28 percent of the jobs lost in April have been regained. We’ll get a fuller sense of the jobs picture on Friday, when the BLS releases their numbers for June.
June manufacturing sector index rebounds 9.5 points into positive territory
The June Purchasing Manager Index (PMI®) registered 52.6 percent, up 9.5 percentage points from the May reading of 43.1 percent. This figure indicates expansion in the overall economy for the second straight month after April’s contraction, which ended a period of 131 consecutive months of growth. Comments from the panel were positive (1.3 positive comments for every one cautious comment), reversing the cautious trend which began in March.
Consumer confidence index rebounds 12.2 points to 98.1 in June
Consumer confidence partially rebounded 12.2 points in June to 98.1, but remains well below pre-pandemic levels. The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions, but the Present Situation Index suggests that economic conditions remain weak. Faced with an uncertain and uneven path to recovery, and a potential COVID-19 resurgence, it’s too soon to say that consumers have turned the corner and are ready to begin spending at pre-pandemic levels.
Case-Shiller Index increased annual increase to 4.7 percent in April
The Case-Shiller U.S. National Home Price NSA Index reported a 4.7 percent annual gain in April, up from 4.6 percent in the previous month. Twelve of the 19 cities reported higher price increases in the year ending April 2020 versus the year ending March 2020. After seasonal adjustment, the National Index posted a month-over-month increase of 0.5 percent, while the 10-City and 20-City Composites both posted 0.3 percent increases. In April, all 19 cities (excluding Detroit) reported increases before seasonal adjustment, while 16 of the 19 cities reported increases after seasonal adjustment.