US: Focus on manufacturing ISM, construction spending, and auto sales - BBH

Research Team at BBH, suggests that the US calendar is full while the focus is on the April manufacturing ISM, construction spending, and auto sales. 

Key Quotes

“Later in the US afternoon, the Fed releases its Beige Book ahead of the June 15 meeting.  US manufacturing surveys for May have been disappointing.  It is as if after a couple of month pick-up, they have slowed.  This was evident in yesterday's Chicago PMI and the Dallas Fed survey.  Construction spending is expected to rise for the third consecutive month.  Auto sales are expected to have remained at an elevated pace with little change sequentially. 

Taken as a whole, the picture that may emerge is one that is vastly improved over the Q4 15-Q1 16 soft patch.  However, talk of a 3-handle on Q2 GDP may be a bit much at this juncture.  On balance, given the UK referendum and some mixed data, we suspect a July rate hike is more likely than June.”