Machinery & Construction | North America Weekly Market Pulse

Research evidence excerpt

Machinery & Construction | North America Weekly Market Pulse

Idea

July 26, 2026 10:00 AM GMT

Morgan Stanley & Co. LLCMMachinery & Construction | North America Angel Castillo

Equity Analyst

Weekly Market Pulse Angel.Castillo@morganstanley.comStefan Diaz, CFA +1 212 761-1931

Stefan.Diaz@morganstanley.com +1 212 761-1834

Construction starts mixed, ABI higher MoM, but below Oliver Jiang

expansion threshold; Komtrax mostly higher; New Single-Family ResearchOliver.Jiang@morganstanley.comAssociate +1 212 761-6458

Home Sales up MoM; Corn and Soybean futures up WoW; CMI Esther O Osinaiya

Research Associate

now expected to phase in MY27 engines over next year; S&P Esther.Osinaiya@morganstanley.com +1 212 761-3176

flash US Mfg PMI eased to 53.8 Machinery & Construction

North America

Industry View Attractive

Construction: June non-residential (building & non-building) construction starts

( Exhibit 6 ) increased +3% YoY (-22% MoM) on a value basis, as a +35% YoY jump in

non-building offset a -14% YoY decline in non-residential building. Within non-

residential building, the drag was largely driven by manufacturing (-79% YoY),

partially offset by commercial (+24% YoY, led by office & bank buildings +43%,

where data centers are reported) and miscellaneous non-residential (+126% YoY). In

non-building, growth was led by miscellaneous non-building (+175% YoY), electric

power & heating systems (+62% YoY), and bridges (+72% YoY), partially offset by

streets & highways (-13% YoY) and river & harbor development (-42% YoY). By

square footage, nonresidential starts declined -2% YoY, as warehouses (+25% YoY)

and amusement (+31% YoY) were more than offset by manufacturing plants (-36%

YoY), schools & colleges (-27% YoY), and hospital & health treatment (-45% YoY).