MetroIntelligence Economic Update by P. DUFFY
Construction spending flat in August, but up 8.9 percent year-on-year
Construction spending during August 2021 was estimated at a seasonally adjusted annual rate of $1,584.1 billion, virtually unchanged from the revised July estimate of $1,584.0 billion. The August figure is 8.9 percent above the August 2020 estimate of $1,455.0 billion. During the first eight months of this year, construction spending amounted to $1,034.5 billion, 7.0 percent above the $966.7 billion for the same period in 2020.
PCE Price Index up 0.4 percent in August and 4.3 percent year-on-year
The inflation tracker PCE Price Index rose 0.4% in August, the same as in July but down from the previous three months, and was up 4.3% year-on-year. The ‘core’ index — minus energy and food — rose 0.3% in August, also the same as in July but down from the previous three months, and was up 3.6% year-on-year.
Consumer spending rose four times faster than incomes in August
In August, personal income increased 0.2 percent, disposable personal income (DPI) increased 0.1 percent and personal consumption expenditures (PCE) rose 0.8 percent, leading to a decline in the savings rate to 9.4 percent, down from 10.1 percent in July.