Handsy Week in Review
Jobs, surveys, & more
The U.S. government owned shares in zero private companies prior to the start of 2025. With the Commerce Department taking a minority equity stake in 7 semiconductor companies this week, we’re now up to 30.
The Federal Government isn’t quite seizing the means of production, but it’s being handsier than at any point in recent history.
This week was loaded with economic data releases including construction spending, jobs, job openings, several industry surveys, and more.
Monday
Construction Spending
Construction spending inched lower in June and is down more than 3% over the past year. This is particularly bad because data center construction spending surged an almost unthinkable 7% for the month. Put another way, data center spending rose by $4.5 billion (seasonally adjusted annual rate) in June, and total construction spending still fell by $2.0 billion.
The only other real bright spot is the power category, which as of April surpassed manufacturing as the largest nonresidential subsegment. Even that momentum is a function of the data center boom, though.
There are lots of dark spots. Warehouse investment, which looked to be stabilizing at the start of 2026, is back in freefall. Manufacturing construction spending continues to fall like an anvil.
The residential segment continues to soften. No surprise there, given mortgage rates.
Big picture, this is a discouraging release.
ISM Manufacturing PMI
Manufacturing activity expanded again in July, according to this survey of the industry’s purchasing managers. That’s good news, though the manufacturing side of the economy is still far from strong. This comment from a paper product manufacturer stands out:
“Our customers in Asia continue to procure elsewhere to avoid paying a tariff. While the Iran war was paused, it was terrific to see fuel prices (and delivery costs) falling steadily. Now that skirmishes have resumed, we expect fuel to rise again.”
Senior Loan Officer Opinion Survey
Lending standards are still very tight, though banks noted that standards are looser than one year ago for all categories except consumer loans.
TSA Checkpoint Travel Numbers
Nothing good to report with air travel, with passenger counts remaining 2-3% below year-ago levels, according to TSA gate check numbers data.
