Highlights
Today's construction outlays report corroborates mild recovery in the housing sector. Construction outlays advanced 0.4 percent in June, following a 1.6 percent jump in May (originally up 0.9 percent). Market expectations were for a 0.5 percent boost for June.

The gain in June was led by private residential outlays which increased 1.3 percent after a 3.1 percent boost in May. The new multifamily subcomponent jumped 3.4 percent, following a 6.9 percent spike in May. The new one-family component increased 3.0 percent in June, following a 2.2 percent gain the prior month.

Private nonresidential outlays edged up 0.1 percent in June, following a 1.3 percent rise in May. Public outlays were flat after a 0.5 percent boost in May.

On a year-ago basis, overall construction stood at up 7.0 percent in June, compared to 8.1 percent prior month.

The good news is that housing is showing a modest uptrend. While the multifamily subcomponent has shown strength in recent months, the single-family subcomponent is now gaining. And it is good that housing is improving as manufacturing is showing signs of slippage.

Market Consensus before announcement
Construction spending jumped 0.9 percent in May, following a 0.6 percent gain in April. The increase in May was led by private residential outlays which increased 3.0 percent after a 1.7 percent boost in April. Also behind the latest gain was a 0.4 percent rise in private nonresidential outlays. In contrast, public outlays declined 0.4 percent in May after a 0.9 percent drop the prior month.

2012 Release Schedule

Released On: 1/3 2/1 3/1 4/2 5/1 6/1 7/2 8/1 9/4 10/1 11/1 12/3 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct