10/11: MetroIntelligence Economic Update by P. DUFFY

Consumer Price Index unchanged in September, up 1.7 percent year-on-year

The Consumer Price Index was unchanged in September after rising 0.1 percent in August, and rose 1.7 percent year-on-year.  The index for all items less food and energy rose 0.1 percent in September after increasing 0.3 percent in each of the last 3 months, and was up 2.4 percent year-on-year.



September Small Business Optimism Index slips 1.3 points as uncertainty increases

The small business Optimism Index maintained took a dip in September, falling 1.3 points to 101.8, but was still with the top 20 percent in the Index’s 46-year history. The survey shows no sign of a recession, and indicated continued job creation, capital spending, and inventory investment, all consistent with solid, but slower growth. However, the Uncertainty Index rose 2 points, revisiting high levels of concern.



Mortgage applications rise 5.2 percent as rates dip 9 basis points to 3.90 percent

The Market Composite Index increased 5.2 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 1 percent (but up 10 percent year-on-year) and refinance activity rising 10 percent (and up 163 percent year-on-year).  The average contract interest rate for 30-year fixed-rate mortgages decreased nine basis points to 3.90 percent.