US: Focus on construction spending - Nomura

Analysts at Nomura note that the US private residential construction has slowed in recent months with easing of both single- and multi-family residential construction spending.

Key Quotes

“Supply-related constraints such as the lack of skilled labor and developable lots have been weighing on residential investment. In addition, there seem to be signs of deterioration in home affordability increasingly affecting home demand.”

“Subdued growth in private residential investment will continue to weigh on overall construction outlay in Q3. In addition, incoming data on nonresidential structures have been lukewarm, but the ongoing strong momentum in the economy will remain supportive for future growth.”