US: Focus on ISM Manufacturing and construction spending – Nomura
|Analysts at Nomura point out that the US construction spending fell 1.1% m-o-m in June, weighed on by an unusually large 11.0% m-o-m decline in spending on public educational structures.
Key Quotes
“This series could revert in July, adding some boost to overall construction spending. However, looking beyond the unusual decline in the public education category, private residential construction spending was somewhat soft in June, falling 0.5% m-o-m.”
“ISM manufacturing index: We expect the ISM manufacturing index to decline by 0.6 percentage points (pp) to 57.5 in August, a still-solid reading consistent with firm economic momentum, but likely reflecting continued trade concerns. Regional manufacturing surveys in August were somewhat divided, with increases in the manufacturing indices from the Dallas, Philly and Kansas City Feds, but declines in the Empire State and Richmond Fed surveys. Despite the mixed signals, we expect trade concerns to weigh on manufacturer sentiment in August.”
“Total vehicle sales: We expect vehicle sales to grow slightly in August to a pace of 16.8m saar from 16.7m saar in July. Sales have steadily trended lower after a transitory increase following the damage from Hurricanes Harvey and Irma in the late summer of 2017.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.