MetroIntelligence Economic Update by P. DUFFY
July U.S. economic index slumps to 47.5, the sharpest monthly decline since May 2020
The headline Flash US PMI Composite Output Index registered 47.5 in July, down notably from 52.3 in June to signal a solid contraction in private sector output. The rate of decline was the sharpest since the initial stages of the pandemic in May 2020, as both manufacturers and service providers reported subdued demand conditions.
Time to build a single-family home 12 days longer in 2021 due to supply chain challenges
The 2021 Survey of Construction (SOC) from the Census Bureau shows that the average completion time of a single-family house is around 8.2 months, which typically includes a little over a month from authorization to start and another 7.1 months to finish the construction. Moreover, it took approximately 12 days more in 2021 than in 2020, as supply-side challenges persisted throughout the year. The time from authorization to completion varies across the nation and depends on the geographic location and whether the house is built for sale or custom-built.
Chicago Fed National Activity Index unchanged in June
The Chicago Fed National Activity Index (CFNAI) was unchanged at –0.19 in June. Two of the four broad categories of indicators used to construct the index made negative contributions in June, and two categories deteriorated from May. The index’s three-month moving average, CFNAI-MA3, moved down to –0.04 in June from +0.09 in May.