Analysts at Nomura suggest that volatility in US home improvement spending has recently played an outsized role in total construction spending fluctuations.
Key Quotes
“Home improvement spending increased 11.6% m-o-m in April, the largest gain since 2002, after a 10.1% decline in March. Looking through this monthly volatility, we expect construction spending to increase at a trend-like pace over the near term. At the moment, our Q2 GDP tracking estimate sees a steady 1.7% q-o-q gain in residential investment during Q2.”
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