U.S. construction spending dips as Campbell's Co. prepares earnings report
- The Commerce Department announced a 0.1% decrease in U.S. construction spending for October.
- Analysts expect Campbell's Co. to report lower earnings but higher revenue compared to last year.
- Overall, the week reflects a mixed economic outlook, with optimism for job growth following a slump in hiring.
In the United States, a series of economic indicators were highlighted as significant events for the week starting December 2, 2024. The Commerce Department released its monthly report on construction spending, indicating a decrease of 0.1% for October. This decline follows a modest increase of 0.1% in September, which had seen construction spending rise to a seasonally adjusted annual rate of $2.15 billion. The annual comparison showed a more favorable picture with an overall 4.6% increase in construction spending compared to the previous year. However, these monthly fluctuations hinted at a potentially volatile construction market moving into winter. Additionally, Campbell's Co. is set to report its fiscal first-quarter earnings on December 4, 2024. Analysts anticipate adjusted earnings of 87 cents per share, with revenue figures around $2.8 billion. Although this profit projection would represent a decrease from the same period last year, revenue is expected to surpass previous figures. Campbell's, now under a new name following shareholder approval for a rebranding initiative, remains a significant player in the packaged food industry, offering a range of products beyond just soup. Economists are also focusing on the job market, where predictions suggest a bounce-back in hiring for November after an uncharacteristically low increase of just 12,000 jobs added in October. The Labor Department's upcoming report is expected to show a recovery, with nonfarm payrolls projected to add around 177,500 jobs. This resurgence in employment figures would indicate a resilience in the labor market following disruptions caused by strikes and adverse weather conditions, which had temporarily sidelined many workers. Overall, the week presents a mixed outlook for the U.S. economy as indicators of construction spending show potential weakness while also highlighting forthcoming earnings from major corporate players. As these trends evolve, they will be closely watched by both market analysts and economic policymakers looking to understand the broader implications for growth and stability in the economy.