Business Conditions Improve Slightly for American Factories
A recent report from the Institute for Supply Management (ISM) indicates a slight uptick in business conditions for American factories. The manufacturing survey, which measures the overall health of the sector, rose to 46.4% in July from 46% in the previous month. While this increase is a positive sign, the reading still suggests a sluggish recovery for the industrial side of the economy. Notably, June’s reading was the lowest recorded since the beginning of the pandemic in 2020.
Construction Spending Shows Growth
In contrast to the relatively stagnant industrial sector, the construction industry experienced growth in June. Both companies and the government increased their investments in construction projects across the United States. The Commerce Department reported a 0.5% rise in construction spending, reaching a total of $1.94 trillion.
Caterpillar Reports Strong Revenue Growth
Caterpillar, a leading manufacturer of construction products, celebrated a remarkable 22% increase in revenue during the second quarter. Despite facing higher prices, the company experienced a surge in demand for its products. This impressive performance demonstrates the resilience of the construction sector.
JetBlue Airways Faces Challenges
Domestic carrier JetBlue Airways suffered a setback as it warned investors about a potential third-quarter loss. The company cited fierce competition in international travel and other challenges as contributing factors. This news caused a decline in JetBlue Airways’ share price.
Yellow Defies Expectations
Despite recently shutting down operations and preparing to file for bankruptcy, trucking company Yellow saw its stock price more than triple this week. This unexpected development has puzzled market analysts and investors alike.