NEW YORK (Reuters) - Construction spending rose more than expected in March, and a survey of factory activity in April increased, suggesting steady recovery in U.S. demand.
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The pace of growth in the U.S. manufacturing sector slowed in April for a second straight month but input prices were at their highest in nearly three years, according to an industry report released on Monday.
JAMES NEWMAN, HEAD OF TREASURY TRADING AND AGENCY TRADING, KEEFE, BRUYETTE, AND WOODS, NEW YORK
"It looks like good data, prices paid is a little bit higher that what they were looking for and the number itself is almost stronger by one-tenth. Its good data, the market is selling off a little bit but I wouldn't call it market moving."
DAVID SLOAN, ECONOMIST, IFR ECONOMICS, A UNIT OF THOMSON REUTERS:
"March's construction spending report with a 1.4% rise saw its first increase since November and its strongest rise since April 2010, comfortably exceeding a consensus for a 0.4% increase even with net revisions marginally negative. January's change was revised up by 0.8% to -1.0% from -1.8%, but February was revised down by 1.0% to -2.4% from -1.4%. The underlying construction picture is weak but the March rebound suggests a harsh winter exaggerated the 3 straight declines (now totaling 6.6%) that preceded it, with more favorable weather in March seeing those losses partially corrected."
MARKET REACTION: STOCKS: U.S. stock indexes tacked on gains BONDS: U.S. bond prices added losses FOREX: The dollar was little changed