Construction spending, ISM better than expected. But …
Posted on Tuesday, July 1st, 2008 | In Current Market News, EconomicsWe’re getting some more economic data as I write. Here’s what the numbers show:
The overall ISM Manufacturing index came in at 50.2 in June. That was up from 49.6 a month earlier, and better than the 48.5 reading that was expected. In fact, it was the highest reading since January.
But the individual components of the report don’t look as positive. The index tracking new orders ticked down to 49.6 from 49.7. The index measuring employment dropped to 43.7 from 45.5, the lowest since May 2003 (42.4). And the index measuring prices paid jumped to 91.5 from 87. That’s the highest reading going all the way back to July 1979 (93.1).
Construction spending, for its part, dropped 0.4% in May. That was a bit better than the 0.6% decline that was expected. April’s reading was revised up to -0.1% from 0.4%.
Private residential spending dropped again (by 1.6%), while private nonresidential spending inched up by 0.2%. By subsector, construction spending rose 3.2% in the lodging arena and 2.1% in the power business. But amusement construction spending dropped 5.4% and commercial construction spending dropped 1.4%.
Market reaction: A spike in stocks off the lows, a quick move up in the dollar, and a drop from the highs for bonds. But can it hold?
Last 5 posts by Mike Larson
- Tightening Begins Overseas; Here? Not So Much … - October 9th, 2009
- Sayonara Treasury Bubble! - May 1st, 2009
- Straight talk on the Obama mortgage plan - February 20th, 2009
- Construction spending down, but not out ... yet - January 5th, 2009
- Early results show dismal holiday retail sales - December 26th, 2008
 About Mike Larson (http://blogs.moneyandmarkets.com/blog/interest-rate-roundup)
Mike Larson joined the company in 2001, and has more than 10 years of experience researching and writing about personal finance, investing, and the housing and mortgage industry. In 2003, Mr. Larson was named associate editor of the company’s monthly Safe Money Report. In this role, he is responsible for writing and editing as well as analyzing trading opportunities for clients. Mr. Larson is also a regular contributor to the company’s daily e-letter, Money and Markets and editor of three of its premium trading services. Before joining Weiss Research, Mr. Larson was a personal finance reporter for Bankrate.com, where he wrote extensively on mortgage lending, banking, residential real estate, and Federal Reserve Board policy. His responsibilities included analyzing economic data and interest rate trends for a weekly column and developing rate forecasts for a regular index feature. Previously, Mr. Larson held positions at Bloomberg News and the Boston Herald. Recognized as an interest rate and mortgage market expert, Mr. Larson’s views have been quoted in numerous publications nationwide, including the Washington Post, Chicago Tribune, Dow Jones Newswires, Associated Press, Reuters, CNNMoney.com, Sun-Sentinel, Tampa Tribune and the Palm Beach Post. His in-depth analysis of the housing and mortgage market and accurate forecast of the subprime crisis has lead to frequent appearances on CNBC, CNN, Fox Business News, and Bloomberg Television, as well as many nationally syndicated radio shows. Mr. Larson’s understanding of the U.S. real estate market has also been recognized overseas, having recently been featured in a documentary on the subject produced by a Barcelona-based television station. In addition, his writing has been acknowledged by both the National Association of Real Estate Editors and the Massachusetts Press Association. Among the first analysts to call the housing slide, Mr. Larson’s policy paper, “How Federal Regulators, Lenders and Wall Street Created America’s Housing Crisis: Nine Proposals for a Long-Term Recovery,” received broad media coverage following its July 2007 submission to the Federal Reserve and FDIC. In the paper, Mr. Larson accurately predicted the long-term impact of the deepening subprime mortgage crisis on the broader economy that the nation faces today. Mr. Larson holds B.A. and B.S. degrees from Boston University. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.