Economic Update by P. DUFFY
Construction spending rises 1.0 percent in December, up 5.7 percent year-on-year
Construction spending during December 2020 was estimated at a seasonally adjusted annual rate of $1,490.4 billion, up 1.0 percent from November and 5.7 percent year-on-year. The value of construction for all of 2020 was $1,429.7 billion, up 4.7 percent from 2019.
January manufacturing sector index dips 1.8 points to 58.7, but still well into expansion mode
The January Manufacturing PMI® registered 58.7 percent, down 1.8 percentage points from the seasonally adjusted December reading of 60.5 percent. This figure indicates expansion in the overall economy for the eighth month in a row after contraction in March, April, and May.
Pending home sales slip 0.3 percent in December, but up 21.4 percent year-on-year
The Pending Home Sales Index hit 125.5, an all-time high for December, but still slipped 0.3% from the prior month, for the fourth consecutive month of decline after an unseasonal surge in August. Nationally, contract signings rose 21.4 percent from December 2019, with all regions reaching double-digit year-over-year increases.
Personal income rose 0.6 percent in December, spending fell 0.2 percent
In December, personal income increased 0.6 percent, disposable personal income (DPI) increased 0.6 percent and personal consumption expenditures (PCE) decreased 0.2 percent. The personal savings rate rebounded to 13.7% from 12.9% in November.
Inflation tracker PCE Price Index up 0.4 percent in December and 1.3 percent year-on-year
The Fed-preferred inflation tracker PCE price index increased 0.4 percent in December and 1.3 percent year-on-year. Excluding food and energy, the PCE price index increased 0.3 percent in December and 1.5 percent year-on-year.