Blog
Fiscal Stimulus Lifts Construction Spending in June
The major data news this morning is the improvement seen in the sentiment-based ISM Manufacturing Index, a private industry survey, but it’s helpful that hard data is backing up sentiment as construction spending unexpectedly improved in June.
Against expectations that construction spending would fall 0.5% in June, following a 0.8% drop in May, the actual figure rose 0.3%.
“We may finally be getting some boost from fiscal policy,” noted economist Joseph LaVorgna from Deutsche Bank as he pointed out that public construction advanced 1.0% in the month, but private construction declined 0.1%.
“For construction spending, all the signs are there that we've pulled back and that we are on the verge of growing again,” added Jim Awad, managing director at Zephyr Management.
BMO economist Jennifer Lee noted June marks only the third increase in the past twelve months. “Gains were had in both the residential and non-residential sectors, a combination which, like the headline, has only happened three times in the past twelve months,” she added.
If the ISM report, released at the same time, is broadly correct for July, then construction spending could see continued gains in the third quarter.
All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
Latest Articles
By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...
Late-Stage Delinquencies are SurgingAug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...
Published by the Federal Reserve Bank of San FranciscoIt was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...
Comments
Leave a Comment