Progress of Construction Lagging Behind Manufacturing

The Industrial Material rail traffic and job reports show highlighted differentiation in the construction material shipment and manufacture material shipment sectors with the construction sector stagnating and lagging behind.

Piper Jaffray reported that in a difficult overall job situation, the manufacturing sector is showing strength creating jobs regularly with 29k jobs being created in May alone and this trend could lead its domestic environment to gradually strengthen, helping to support manufacturing sector coverage names.

On the other hand, the job creation in the construction sector got marked out by the lost jobs in May. The firm claimed that the construction shipments were weak at a time when sequential strength was expected going into the peak season. However, the situation remains optimistic, as tax credits and temporary highway funding promise to speed things up.