US: Construction spending likely to gain by 0.4% - Nomura

Analysts at Nomura points out that consensus expects a 0.4% increase in US construction spending for June after it remained flat in May.

Key Quotes

“Construction spending remained flat in May, attributable to weak private construction spending. Private residential construction spending fell by 0.6% m-o-m in May. Private nonresidential construction spending dropped 0.7% m-o-m, a fifth consecutive monthly decline. Incoming data suggest that private nonresidential construction may likely have been subdued in June. However, private residential construction may rebound, given a strong pick-up in housing construction starts in the month. However, incoming data suggest multi-family housing construction slowed notably in recent months, which may continue to weigh down residential construction outlay.”