The nonmetallic mineral products leading index increased 1.0 percent to 238.1 in June from a revised 235.7 in May, and its six-month smoothed growth rate increased to 5.4 percent from a revised 4.0 percent in May, according to USGS.
The six-month smoothed growth rate is a compound annual rate that measures the near-term trend. A growth rate above +1.0 percent is usually a signal of future growth in industry activity, while a growth rate below -1.0 percent points to a decrease in activity.
Residential construction decreased for a second consecutive month in June and new home sales retreated from its May six-year high sales record. However, the latest data from the U.S. Census Bureau show that nonresidential construction spending increased in May. This bodes well for the nonmetallic mineral products industry because nonresidential construction has generally been two-thirds of construction spending since the start of the U.S. economic recovery.
The nonmetallic mineral products leading index and its growth rate increased in June, which suggest that the recovery in the nonmetallic mineral products industry is likely to continue in the near term.
Three of the four leading index indicators increased in June. The S&P stock price index for building products companies rebounded and made the largest positive contribution, 0.7.
The coincident index, which measures current industry activity, increased 1.3 percent to 134.2 in June from a revised 132.5 in May. Its six-month smoothed growth rate increased to 8.5 percent in June from a revised 6.9 percent in May.