Construction spending rose 0.8% in November after downward revisions to October. Solid gains in private sector construction activity offset lackluster performance in the public sector. That trend will likely continue despite talk of an infrastructure bill by the administration in 2018. The administration prefers to target public sector investment to projects that will bring in private sector investors; that means toll roads and bridges
Posts tagged Manufacturing
Consumer spending rose 0.4% in November after adjusting for inflation. That follows a slight downward revision for October. The gains outpaced disposable incomes, which rose a tepid 0.1% after adjusting for inflation. Some of the increase in consumer spending relative to incomes can be attributed to the drawdown in wealth and the use of insurance (as opposed to income) to repair and replace property damaged by recent storms and fires. There is also a small wealth effect
Payroll employment rose a more-than-expected 228,000 in November. The largest increases occurred in health care, professional services and manufacturing. Gains in health care and professional hires were concentrated in low-wage areas, which include support staff and non-doctor health care providers. That marks a shift from earlier in the year when much of the hiring in professional services was for new college graduates who are higher on the wage scale. The increase in administrative help reflects the expansion of offices; this is an area where employment agencies have reported shortages.
Construction spending surged 1.4% in October, buoyed by an increase in public sector outlays. Public sector construction spending jumped nearly 4% in October with repairs to public buildings and infrastructure.
Durable goods orders fell 1.2% in October, giving up a portion of the upward 2.2% swing in September. Much of that weakness may be attributed to a drop in volatile aircraft orders, which fell 18.6% in October after surging more than 30% during the previous two months. Read More »
Durable goods orders jumped 2.2% in September after being revised up slightly for the month of August. A second monthly surge in aircraft orders – up 31.5% in September – contributed to those gains. Vehicle orders were flat but will likely pick up with sales to those who are replacing vehicles destroyed by hurricanes and fires in recent months.
Durable goods excluding the highly volatile transportation sector rose a moderate but still solid 0.7% last month, matching the pace of August. Gains outside of the transportation sector were strongest in communications equipment for the second month in a row.
Durable goods orders rebounded 1.7% in August after a drop of 6.8% in July. A 44.8% surge in the volatile aircraft sector accounted for a good portion of those outsized gains. Core (non aircraft and defense) durable orders also surprised to the upside
Real GDP was revised up to 3% in the second quarter, 0.4% higher than initially reported. Almost all of that upward revision came from a surge in consumer spending, which spilled over into the start of the third quarter. We also saw somewhat stronger business investment and an accumulation of inventories, which had been drained in the first quarter. The weak areas were state and local government spending, where we are starting to see more of the unfunded pensions across many states.
Durable goods orders dropped 6.8% in July after surging in June. Much of the weakness may be attributed to a 70% drop in aircraft orders which soared nearly 129% in the wake of the Paris air show.
Orders for new vehicles fell 1.2%, marking the second consecutive monthly decline. Vehicle producers are scaling back since aggressive incentives and financing deals liquidated what was left in pent-up demand in recent years. The industry now relies on replacement demand.
Durable goods orders jumped 6.5% in June, following upward revisions to May. A 131% increase in orders following the Paris Air Show was a major contributor to those gains. Boeing alone reported $37 billion in new orders. Aircraft orders have long lead times, however, taking as many as five years to complete. They are also subject to last minute cancellations. Core durable goods orders, excluding the volatile aircraft and defense sectors, actually contracted by 0.1% during the month.