Construction Spending Keeps Declining in the US
Today we had some positive reports being released form the US, first the ADP non-farm employment which showed a 2.37 million increase in employed people during June, while the report for May was revised higher from -2.76 million to more than 3 million. But, the construction spending kept declining, although that report is still for May.
US Construction Spending for May 2020
- US construction spending for May 2020 fell by -2.1% vs. 1.0% estimate.
- Prior month was revised lower to -3.5% from -2.9%
- residential construction fell -3.9% vs. -5.0% last month
- nonresidential fell -0.9% vs. -2.5% last month
- private construction spending fell -3.3% vs. -3.8% last month with residential falling by -4.0% from -5.1% and nonresidential falling by -2.4% vs. -2.3%
- public construction spending rose by 1.2% vs. -2.7% last month. Residential public spending increased 3.6% vs. -2.7%. Nonresidential public spending increase 1.2% vs. -2.7% last month
Although lower than expected the number is for May when uncertainty was still fairly high. Nevertheless the revision to the prior month nearly reached the 2011 a low of -3.7% (see chart below).
SF Fed’s Mary Daly is a nonvoting member on the Federal Reserve Board. She is speaking in a virtual economic forum
Fed’s Daly – speaking in a virtual economic forum – is saying:
- she would be hesitant to call recent positive signs a recovery
- she sees no V-shaped recovery
- sees US unemployment staying above 10% through at the end of the year under her best case scenario
- if we can get virus under control, the recovery can take just 4 or 5 years
- virus path to dictate pace at which unemployment declines
- sees unemployment staying elevated even as workers returning
- we are in a really uncertain place right now
- consumer demand remains much weaker than pre-pandemic
Comments are less positive than the market is expecting. A 4-5 year recovery is certainly not what the market expects or wants (nor the Trump administration into the November election).
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
About the author
Skerdian Meta
// Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
Subscribe
Login
0 Comments
