News in end use

According to the February ADP® National Employment Report™, released today (3-2-22), nonfarm private sector employment increased by 475,000 jobs from January to February. ADP’s chief economist said, “Hiring remains robust but capped by reduced labor supply post-pandemic. Last month, large companies showed they are well-poised to compete with higher wages and benefit offerings.”

According to data provided by the FDIC, with further analysis provided by the National Association of Home Builders (NAHB), residential construction loan volume during Q4 2021 reached a post-Great Recession high, as home building activity posted gains for the entire year. According to the report, the volume of 1–4-unit residential construction loans made by FDIC-insured institutions increased 1% during Q4 of 2021.

On Tuesday (3-1-22), the U.S. Census Bureau reported that total construction spending during January 2022 was estimated at a seasonally adjusted annual rate (SAAR) of $1,677.2 billion, 1.3% above the revised December estimate of $1,655.8 billion. The January figure is 8.2% above the January 2021 estimate of $1,549.8 billion.

Statistics Canada (StatsCan) reported today (3-1-22) that the real gross domestic product (GDP) was virtually unchanged in December, following six consecutive months of growth. Growth in services-producing industries (+0.1%) was offset by a decline in goods-producing industries (-0.1%).

According to the latest report from Redfin, the Seattle-based, technology-powered real estate firm, during the four weeks ending February 20, 2022, the number of newly listed homes for sale was down “just” -2% year-over-year. That is the smallest decline since mid-November.

Statistics Canada reported today that prices of products manufactured in Canada, as measured by the Industrial Product Price Index, rose 0.3% on a monthly basis in January 2022 and were up 16.9% year-over-year. The prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index, increased 6.5% month-over-month.

In a recent posting, the National Association of Home Builders (NAHB) has brought to light the “missing middle” in the residential construction sector. The missing middle includes the development of medium-density housing, which includes townhouses, duplexes, and other small multifamily unit properties.

The National Association of Realtors® (NAR) reported on Friday (2-25-22) that their Pending Homes Sales Index (PHSI), which is based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops, declined -5.7% in January 2022 (from December 2021) to a reading of 109.5.

The U.S. Bureau of Economic Analysis reported on Friday (2-25-22) that, according to estimates, personal income increased $9.0 billion (less than 0.1%) in January. Disposable personal income increased $19.8 billion (0.1%). Personal consumption expenditures increased $337.2 billion (2.1%).

The University of Michigan today (2-25-22) released its final Consumer Sentiment Index (CSI) for February. The Index of Consumer Sentiment declined to a reading of 62.8 in February, down from 67.2 in January. This is a month-over-month decrease of -6.5% and down -18.2% year-over-year (76.8 in February 2021).