1/31: MetroIntelligence Economic Update by P. DUFFY

December Pending Home Sales index down 4.9 percent from November but up 4.6 percent year-on-year

Although the Pending Home Sales Index (PHSI) fell 4.9 percent to 103.2 in December, it was still up 4.6 percent year-on-year.



GDP grew 2.1 percent in 4Q 2019 and 2.3 percent for all of 2019 in advance estimate

Real gross domestic product (GDP) increased 2.1 percent in the fourth quarter of 2019, according to the “advance” estimate, the same as in the third quarter. For the full year, the 2.3 growth rate compares to 2.9 percent in 2018 and 2.4 percent in 2017.



Federal Reserve opts to keep interest rates at current levels at January meeting

Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. The Committee decided to maintain the target range for the federal funds rate at 1‑1/2 to 1-3/4 percent, and that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective.