2010 Economic Calendar
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Construction Spending  
Released On 8/2/2010 10:00:00 AM For Jun, 2010
PriorPrior RevisedConsensusConsensus RangeActual
Construction Spending - M/M change-0.2 %-0.1 %-0.5 %-0.9 % to -0.3 %0.1 %
Construction Spending - Y/Y change-8.0 %-8.8 %-7.9 %

The headline number for construction outlays in June came in higher than expected. However, the apparent strength is overstated given the source of the gain and revisions to May. Construction outlays in June edged up 0.1 percent, following a 1.0 percent drop in May. The June number is better than the median forecast for a 0.5 percent decrease. However, May was revised down sharply from an initial estimate of a 0.2 percent dip.

The June rebound was led by a 1.5 percent jump in public outlays, following a 0.3 percent decline the prior month. In contrast, the private residential component declined 0.8 percent after a 1.5 percent fall in May. Private nonresidential outlays slipped 0.5 percent in June after dropping 1.3 percent in May. Cleary, residential outlays are weighted down by the recent decline in housing starts while nonresidential spending is still soft from high commercial vacancy rates.

On a year-ago basis, overall construction outlays improved to minus 7.9 percent in June from down 8.8 percent in May.

On the release, markets were more focused on the ISM manufacturing report which moderated less than expected. Equities advanced further while Treasury yields firmed.

Consensus Outlook
Construction spending in May fell back only 0.2 percent after jumping 2.3 percent in April. The May decline was led by a 0.6 percent dip in private nonresidential outlays after a 0.8 percent boost the month before. The private residential component slipped a modest 0.4 percent after a 5.0 percent spike in April. Public outlays increased 0.4 percent in the latest month after gaining 1.6 percent in April. Looking ahead, the May and June declines in housing starts point to further weakness in the residential outlays component for June. Nonresidential and public outlays components remain under downward pressure from high commercial vacancy rates and weak state & local government revenues.

The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.  Why Investors Care
Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong.
Data Source: Haver Analytics

2010 Release Schedule
Released On: 1/42/13/14/15/36/17/18/29/110/111/112/1
Release For: NovDecJanFebMarAprMayJunJulAugSepOct

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