Five interesting things that Hodges Capital research analysts discovered this week...

#1 FACTORY CONSTRUCTION: New data from the Census Bureau shows that U. S. construction spending has more than doubled from a year ago, reaching $190 billion in April compared to $90 billion in June of 2022. Although construction spending has dropped year-over-year across office and healthcare, demand for domestic manufacturing is gaining momentum due to the production of electric vehicles and solar panels.  

#2 PRODUCTIVITY: A recent report from Barron’s showed a 2.1% fall in U.S. labor productivity from the fourth quarter of 2022 to the first quarter of 2023. The sequential decline marks the fifth straight quarter of negative productivity growth and the worst trend since 1948.    

#3 GOT EARNINGS? According to analysis from Stategas, more than 40% of the companies in the Russell 2000 have not earned a profit in the last 12 months.                          

#4 OPTIMISTIC AUTO DEALERS: Cox Automotive’s most recent quarterly index survey indicated that U.S. auto dealers remain optimistic about the market despite higher financing costs and economic uncertainty. The index increased sequentially by two points to 56, with any score above 50 suggesting forward optimism.

#5 CONSUMER DEBT: According to the Federal Reserve Bank of New York, consumers now owe a record $988 billion on their credit cards, up 17% from a year earlier, or about $5,700 per person.

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