Stat of the Day: Private Data Shows Building Soared in May
Its a very bullish data point for CAT, MTW, and TEX. It also shows how the naysayers have been so wrong about this rally. The momentum just continues to feed on itself. The stock market goes up so more people buy stuff, then more stuff needs to be built, then the government reports turn out bullish, then the stock market goes up. This pattern continues until the Fed makes monetary changes to slow down the growth. It also helps that the economy dropped so far so fast that the corresponding month over month changes provide more fuel to the momentum.
- Sageworks Inc, a financial information firm that tracks the financials of thousands of privately held U.S. companies, said builders in its database reported their sales rose 4.55 percent in May after rising 2.94 percent in April and 1.66 percent in March.
- That resulted in the first rise in Sageworks' measure of trailing three-month construction sales in six months.
- Sageworks released the data after the U.S. Commerce Department reported that construction spending rose for a second straight month in April -- and posted its biggest increase in eight months -- as the private sector put money into both residential and nonresidential projects.