MetroIntelligence Economic Update by P. DUFFY
Pending home sales up 7.5 percent in October but down 1.4 percent year-on-year
The Pending Home Sales Index (PHSI) rose 7.5% to 125.2 in October. Year-over-year, signings fell 1.4%. According to NAR’s Chief Economist Lawrence Yun, “The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”
Personal spending rises at nearly three times the increase in personal income in October
In October, personal income increased 0.5 percent, disposable personal income (DPI) increased 0.3 percent and personal consumption expenditures (PCE) increased 1.3 percent, leading to a decline in the personal savings rate to 7.3 percent.
PCE Price Index up 0.6 percent in October and 5.0 percent year-on-year
In October, the inflation tracking PCE price index increased 0.6 percent. Excluding food and energy, the PCE price index increased 0.4 percent. The index for October increased 5.0 percent from one year ago, reflecting increases in both goods and services. Energy prices increased 30.2 percent while food prices increased 4.8 percent. Excluding food and energy, the PCE price index for October increased 4.1 percent from one year ago.