US Construction Spending: Unchanged in May, moderate growth expected - Wells Fargo
Analysts from Wells Fargo analyzed today’s US construction spending report of the month of May. They forecast moderate construction growth despite the recent slowdown.
Key Quotes:
“Construction outlays in May were roughly flat on the month, but upward revisions to April’s 1.4 percent contraction to a 0.7 percent decline bring some positive light. On a 3-month moving average basis, spending was down 0.2 percent in May.”
“Total construction spending is up 5.2 percent year-over-year based on a 3-month average, consistent with our forecast of moderating construction growth despite recent softening.
“Private non-residential construction continues to lose steam, now down 7.3 percent on a 3-month moving average annual rate. The commercial sector in particular has seen cooling, posting a 0.8 percent 3-month average May contraction.”
“Public spending posted a solid May number of $286.9 billion, but over the year remains 0.6 percent slower. Of note is the public health care sector, up 13.7 percent over the year.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
