Weekly Market Pulse: Machinery & Construction | North America

Research evidence excerpt

Weekly Market Pulse: Machinery & Construction | North America

Idea

August 2, 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

Highway & street awards higher in June; Aggregates organic Oliver Jiang

pricing holds; Corn and Soybean futures down WoW; PCAR ResearchOliver.Jiang@morganstanley.comAssociate +1 212 761-6458

keeps NA/SA outlook steady, raises EU; Durable goods +0.3% Esther O Osinaiya

Research Associate

MoM in June Esther.Osinaiya@morganstanley.com +1 212 761-3176

Machinery & Construction

North America

Construction: ARTBA State and Local Contract Awards advanced in June, with Industry View Attractive

total awards of $17.7B, up from $13.5B in June 2025 (+31% YoY). The gain was led by

rail & transit, which jumped to $4.1B from $0.1B a year earlier, plus a rise in airport

awards (+122% YoY to $1.0B); highway & pavement ($8.5B) and bridge & tunnel

($4.0B) were roughly flat YoY. 31 states grew awards YoY, led by Illinois, New Jersey,

Texas, New York, and North Carolina. YTD awards totaled $85B, +12.5% vs. $75.6B a

year ago ( Exhibit 10 ).

Aggregates: Mortgage applications decreased 6.4% WoW, according to data from

the Mortgage Bankers Association (MBA). Joel Kan, MBA's VP and Deputy Chief

Economist, noted: "Following last week's spike in oil prices, mortgage rates moved

higher, with the 30-year fixed rate increasing to 6.76%, the highest rate since August

2025. This upward trajectory in rates continues to significantly impact refinance

borrowers, with a 10 percent decline in refinance applications, including a steeper

drop in government refinances.