The Bureau of Labor Statistics reported today that the Producer Price Index (PPI) for final demand, seasonally adjusted, declined 0.1% in August. The August drop follows a 0.4% decline in July, but it was proceeded by advances of 1.0% in June, 0.8% in May, and 0.4% in April.
News in end use
Canadian Investment in Building Construction Continued Its Upward Momentum in July
Statistics Canada reported today that investment in building construction continued its upward trend which commenced in October 2021, increasing 0.8% to $21.0 billion (CAD) in July. Both the residential sector and non-residential sector posted increases.
Consumer Price Index Increases 0.1% in August; Year-Over-Year All-Item Index Up 8.3%
The US Bureau of Labor Statistics reported on Tuesday that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in August on a seasonally adjusted basis. Over the past 12 months, the all-item index has increased 8.3% before seasonal adjustment.
Mortgage Credit Availability Declines for Sixth Consecutive Month in August
According to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI), mortgage credit availability declined for the sixth consecutive month in August. The MCAI declined 0.5% to a reading of 108.3 in August. The Conventional MCAI decreased 1.0%.
The NFIB’s Small Business Optimism Index Rises 1.9% in August
The National Federation of Independent Business (NFIB) reported today their NFIB Small Business Optimism Index (SBOI) for August 2022. The August SBOI increased 1.9 points to a reading of 91.8; however, it is the eighth consecutive month that the SBOI has been below the 48-year average reading of 98.
Lot Values Set New Record Levels in 2021
According to the US Census Bureau’s Survey of Construction, lot values for single-family detached housing starts in 2021 increased across the country, with the national value in six out of nine Census division setting new records. The US median lot price now stands at $55,000.
Canadian Employment Declines and Unemployment Rises in August 2022
Statistics Canada reported on Friday that employment fell by 40,000, or 0.2%, in August, bringing the cumulative decline since May 2022 to 114,000, or 0.6%. StatsCan notes that the decline in employment since May has been primarily in full-time work.
Mortgage Rates Continued to Push Higher in the Week Ending September 8, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 8, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.89% with an average 0.7 point, up from last week when it averaged 5.66%.
Non-Site Built Single-Family Completions Continued to Languish in 2021
According to the US Census Bureau’s Survey of Construction data, the total market share of non-site built single-family homes—both modular and panelized—in 2021 was at 2% of all single-family completions. In 2021, there was a total of 24,000 single-family units built using modular and panelized/precut (14,000) construction methods.
US Weekly Jobless Claims Decline for the Week Ending September 3, 2022
Seasonally adjusted, an additional 222,000 Americans made their initial filing for unemployment benefits during the week ending on September 3rd. This is a decrease of 6,000 from the previous week’s revised-lower level of 228,000 (originally reported as 232,000).