MetroIntelligence Economic Update by P. DUFFY
November builder confidence falls six points to 34
Builder confidence in the market for newly built single-family homes in November fell six points to 34 in November. This is the fourth consecutive monthly drop in builder confidence, as sentiment levels have declined 22 points since July and are at their lowest level since December 2022. However, nearly the entire HMI data for November was collected before the latest Consumer Price Index was released and showed that inflation is moderating.
Consumer Price Index flat in October, up 3.2 percent year-on-year
The CPI for All Urban Consumers (CPI-U) was flat in October after rising 0.4% percent in September and 0.6% in August, and rose 3.2% year-on-year. This is lowest annual increase since last June, when it was 3.0%. The ‘core’ CPI minus food and energy costs rose 0.2% after rising 0.3% in both September and August, and rose 4.0% year-on-year. This is the lowest annual increase since September 2021, when it was 4.0%.
https://www.bls.gov/news.release/cpi.nr0.htm
Inflation tracker Producer Price Index falls 0.5 percent in October, up 1.3 percent year-on-year
The Producer Price Index for final demand fell 0.5% in October after advancing 0.4% in September and 0.8% in August. The October decline is the largest decrease in final demand prices since a 1.2% drop in April 2020. The index for final demand rose 1.3% for the 12 months ended in October, the lowest increase since rising 1.2% last July. The index for final demand less foods, energy, and trade services advanced 0.1% in October, the fifth consecutive rise but down from 0.3% in September and 0.2% in August. For the 12 months ended in October, prices for final demand less foods, energy, and trade services moved up 2.9%, down from 3.0% the previous three months and matching last June’s level.