News in end use

The Bureau of Labor Statistics reported today that the Producer Price Index for final demand, seasonally adjusted, increased 0.8% in May. This rise followed advances of 0.4% in April, 1.6% in March, 1.1% in February, and 1.2% in January. On an unadjusted basis, final demand prices moved up 10.8% for the 12 months ending in May.

Realtor.com has updated its 2022 home buying forecast to better account for rising inflation and mortgage rates. The update predicts that home inventory will grow double-digits above 2021, which in turn will offer buyers a better-than-expected chance of finding a home. The forecast anticipates a summer break from the intense pace of home sales.

The National Federation of Independent Business reported today their NFIB Small Business Optimism Index (SBOI) for May. According to the report, the May SBOI fell below the 48-year average reading of 98 for the fifth consecutive month to a reading in May of 93.1. That is -0.1 points below the April reading and a new record low for the index.

Statistics Canada reported today that investment in building construction rose by 2.7% to $20.9 billion (CAD) in April. Increases were reported in both residential, up 3.2%, and non-residential, up 1.4%. On a constant dollar basis (2012=100), investment in build construction grew 3.5% to $13.0 billion.

According to new analysis from Redfin, the Seattle-based, technology-powered real estate brokerage firm, homebuyer budgets are essentially flat from last year, up only 0.3% year-over-year in for the 3-month period ending April 30, 2022. That is slowest rate of growth since June of 2020.

In the latest report from the Washington, D.C.-based nonprofit Home Builders Institute (HBI), the number of construction workers needed to keep up with the current building sector demand is approximately 740,000 per year. The HBI estimates the industry will need more than 61,000 net hires a month to fill vacant positions.

The U.S. Bureau of Labor Statistics reported on Friday that the Consumer Price Index for All Urban Consumers increased 1.0% in May on a seasonally adjusted basis. This follows increases of 0.3% in April, 1.2% in March, and 0.8% in February. Over the past 12 months, the all-item index has increased 8.6% before seasonal adjustment.

Statistics Canada reported today that employment rose by 40,000 (+0.2%) in May, after pausing in April. Since May 2021, when the labor market was impacted by the third wave of the pandemic, total employment has increased by 1.1 million (+5.7%). And as of May 2022, employment was 497,000 (+2.6%) above its pre-pandemic level.

On Friday, the University of Michigan released its Preliminary Consumer Sentiment Index for June. The Index of Consumer Sentiment dropped to a reading of 50.2 in June, down from May’s reading of 58.4, This is a month-over-month decrease of -14.0% and down -41.3% year-over-year (85.5 in June 2021).

According to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) report, which analyzes data from the ICE Mortgage Technology, Mortgage credit availability declined in May 2022. The MCAI declined -0.9% to a reading of 120.0.