MetroIntelligence Economic Update by P. DUFFY
April U.S. economic index slips, but still well in growth mode
The headline Flash US PMI Composite Output Index registered 55.1 in April, down from 57.7 in March. The latest data indicated a strong rise in private sector output, but one that was subdued by the impact of inflation on customer spending.
Although service providers recorded a softer upturn in activity, manufacturing firms noted the quickest uptick in production since last July.
Growing share of prospective home buyers stuck in planning stage
A growing segment of prospective home buyers aren’t moving past the planning stage. At its peak in mid-2021, 61% were actively trying to find a home to buy. Now, the share is back to pre-pandemic levels, at 46%. This is clear evidence that higher mortgage rates and double-digit growth in home prices are discouraging a growing share of buyers from engaging in the purchase process. Fewer buyers in every region are actively searching for a home. From peak to now, the share dropped in the Northeast (72% to 50%), Midwest (51% to 40%), South (58% to 48%), and West (72% to 46%).