- Construction Spending for December rose 1.0% versus estimates of a .2% increase and an upwardly revised .5% gain in November.
- Pending Home Sales for December fell 3.0% versus estimates of a .5% decline and a 3.0% fall in November.
- ISM Manufacturing for January fell to 54.8 versus estimates of 55.5 and a reading of 55.6 in December.
- ISM Prices Paid for January rose to 65.0 versus estimates of 64.0 and a reading of 63.0 in December.

BOTTOM LINE: US construction spending rose more than forecast in December as homebuilding rebounded and office3 and commercial investment increased, Bloomberg reported. Construction spending rose 8.9% for all of 2005 to an all-time record. Construction Spending should remain healthy as hurricane rebuilding continues and commercial construction rises.

Contracts to buy previously owned US homes declined for a fourth consecutive month in December as high home prices proved too rich for some buyers, Bloomberg reported. The pending re-sales index rose 2.3% in the South and 1.5% in the Northeast. Signing fell 8.1% in the West and 9.3% in the Midwest. I continue to believe home sales are slowing to more healthy and sustainable levels.

US manufacturing expanded in January at about the same pace as a month earlier, propelled by orders for business equipment that will drive the economy, Bloomberg said. The order backlogs component of the index rose to 53.5 from 49.5 in December. As well, the new exporter orders component of the index rose to 58.5 from 54.3 in December. According to Chief Executive magazine, a recent monthly survey showed the most confidence by CEOs in the US economy since the survey was started in 2002. This likely means increased corporate spending and hiring. I continue to believe manufacturing will add to US economic growth over the intermediate-term.