MetroIntelligence Economic Update by P. DUFFY
Construction spending edges up 0.1 percent in March, rises 11.7 percent year-on-year
Construction spending during March 2022 was estimated at a seasonally adjusted annual rate of $1,730.5 billion, 0.1 percent above the revised February estimate of $1,728.6 billion. The March figure is 11.7 percent above the March 2021 estimate of $1,548.6 billion. During the first three months of this year, construction spending amounted to $376.6 billion, 12.0 percent above the $336.3 billion for the same period in 2021.
March manufacturing sector index falls 1.7 points to 55.4 due to multiple challenges
The April Manufacturing PMI registered 55.4 percent, a decrease of 1.7 percentage points from the March reading of 57.1 percent. This is the lowest reading since July 2020 (53.9 percent). In April, progress slowed in solving labor shortage problems at all tiers of the supply chain. Panelists reported higher rates of quits compared to previous months, with fewer panelists reporting improvement in meeting head-count targets. April saw a slight easing of prices expansion, but instability in global energy markets continues.
March personal spending surges twice the rate of personal income as consumers tap savings
In March, personal income rose 0.5 percent and personal consumption expenditures (PCE) surged 1.1 percent as consumers tapped their savings, which shrank to 6.2 percent of income (the lowest since December 2013).
Inflation tracker PCE Price Index up 0.9 percent in March and 6.6 percent year-on-year
The inflation tracking PCE price index increased 0.9 percent in March and 6.6 percent year-on-year. Excluding food and energy, the PCE price index increased 0.3 percent and 5.2 percent year-on-year.