In the past week’s Anticipated Economic Updates, various crucial indicators were unveiled. These encompassed data on Construction Spending, expansion in both Public and Private Sector Payrolls, and the Nationwide Unemployment Rate. Additionally, we received the weekly insights into Mortgage Rates and new filings for Unemployment Claims.
Construction Spending Experiences Decline in June
In June, the United States witnessed a reduction in construction spending, with growth ranging from 0.50 percent to a minor contraction of 0.60 percent. Market analysts had projected a more positive month-to-month growth rate of 0.70 percent for construction spending. On a year-over-year basis, construction spending recorded an overall upswing of 3.50 percent, with single-family residential construction contributing to 2.10 percent of this growth. A revision of the May construction spending data shifted the growth rate from an initial estimate of 0.90 percent to a more substantial 1.10 percent from May to June.
Evolvement in Private Residential Construction in June
The private residential construction sector exhibited a modest increase of 0.30 percent in June. Conversely, there was a decline of -0.20 percent in spending on public residential construction during the same period.
Varied Outcomes in July Payroll Growth
In the month of July, the payroll growth exhibited a mix of results. ADP’s report indicated the addition of 324,000 jobs in the private sector, surpassing the earlier projection of 175,000 jobs. This exceeded June’s figure of 455,000 job additions. In contrast, the Nonfarm Payrolls report from the federal government revealed the incorporation of 187,000 jobs in July, falling short of the anticipated 200,000 jobs in both the public and private sectors. June’s reading had shown 185,000 job additions.
National Unemployment Rate Declines in July
The national unemployment rate for the United States demonstrated a decline from June’s 3.60 percent to 3.50 percent in July.
Surge in Mortgage Rates and Initial Jobless Claims
Freddie Mac’s report unveiled a surge in mortgage rates for the previous week, with the average rate for 30-year fixed-rate mortgages rising to 6.90 percent. Correspondingly, the average rate for 15-year fixed-rate mortgages experienced a rise of 14 basis points, reaching 6.25 percent. Additionally, data from the Commerce Department indicated that 227,000 jobless claims were filed in the past week, aligning with forecasts and surpassing the 221,000 claims filed in the preceding week.
Anticipated Economic Insights
In the upcoming week, the economic landscape will feature reports on Inflation and Consumer Sentiment. Alongside these, there will be the regular updates on Mortgage Rates and filings for Jobless Claims.
