MetroIntelligence Economic Update by P. DUFFY
Construction spending up 0.5 percent in June and 3.5 percent year-on-year
Construction spending during June 2023 was estimated at a seasonally adjusted annual rate of $1,938.4 billion, 0.5 percent above the revised May estimate and up 3.5 percent year-on-year. During the first six months of this year, construction spending amounted to $917.4 billion, 3.0 percent above the $890.4 billion for the same period in 2022.
July manufacturing sector index edges up to 46.4 percent, but sector still contracting
The July Manufacturing PMI® registered 46.4 percent, 0.4 percentage point higher than the 46 percent recorded in June. Regarding the overall economy, this figure indicates an eighth month of contraction after a 30-month period of expansion. Amid mixed sentiment about when significant growth will return, panelists’ companies reduced production and continued to manage head counts down, to a greater extent than in previous months.
July service sector index falls to 52.7 percent, but sector still growing
In July, the Services PMI® registered 52.7 percent, 1.2 percentage points lower than June’s reading of 53.9 percent. The composite index indicated growth in July for the seventh consecutive month after a reading of 49.2 percent in December, which was the first contraction since June 2020 (45.4 percent). There has been a slight pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.