MetroIntelligence Economic Update by P. DUFFY
Construction spending slips 0.4 percent in July but up 8.5 percent year-on-year
Construction spending during July 2022 was estimated at a seasonally adjusted annual rate of $1,777.3 billion, 0.4 percent (below the revised June estimate of $1,784.3 billion. The July figure is 8.5 percent above the July 2021 estimate of $1,637.3 billion. During the first seven months of this year, construction spending amounted to $1,013.7 billion, 10.8 percent (±1.0 percent) above the $915.2 billion for the same period in 2021.
Manufacturing sector index flat in July at 52.8 percent as it moves towards supply/demand balance
The August Manufacturing PMI® registered 52.8 percent, the same reading as recorded in July. This figure indicates expansion in the overall economy for the 27th month in a row after contraction in April and May 2020. For a second straight month, the Manufacturing PMI® figure is the lowest since June 2020, when it registered 52.4 percent. New order rates returned to expansion levels, supplier deliveries remain at appropriate tension levels and prices softened again, reflecting movement toward supply/demand balance.
Purchase loan applications fall 2 percent from previous week, decline 23 percent year-on-year
The Market Composite Index for mortgage applications decreased 3.7 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 2 percent (and down 23 percent year-on-year) and refinance activity falling 8 percent (and down 83 percent year-on-year). The adjustable-rate mortgage (ARM) share of activity increased to 8.5 percent of total applications. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.80 percent from 5.65 percent.