MetroIntelligence Economic Update by P. DUFFY
3Q2022 GDP rebounds to 2.6 percent in initial estimate
Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the third quarter of 2022, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.6 percent. The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency The “second” estimate for the third quarter, based on more complete data, will be released on November 30, 2022.
Consumer confidence retreats in October following two months of increases
Consumer confidence retreated in October, after advancing in August and September. The Present Situation Index fell sharply, suggesting economic growth slowed to start Q4. Consumers’ expectations regarding the short-term outlook remained dismal. The Expectations Index is still lingering below a reading of 80—a level associated with recession—suggesting recession risks appear to be rising.
More buyers taking a look at new construction
After bottoming out at 19% in the first quarter of 2022, the popularity of new homes continues to rebound, as the share of buyers looking for new construction rose to 21% and 27% in the second and third quarters of the year, respectively. A possible factor behind this trend is that the inventory of new homes for-sale is 25% higher than a year ago, while the supply of existing homes on the market is unchanged.