Bank Of America Learns Hotel Construction Is Expected To Fall, Discovers Bull Market Possible In Key 'Swing Factors'

Posted by BankInfo on Mon, Aug 18 2014 11:20 am

Hotel construction projections are down throughout the board for 2015, with IHS Group Understanding expecting the largest down development modification, going from +21.8 percent in 2014 to +12 percent in 2015.

Bank of America expert Timna Tanners said in a note on Wednesday early morning that 'The constant general down alterations to non-res investing highlight the constantly disappointing pace of the non-res recovery'.

Non-residential building is anticipated to pick up on the heels of boosted loan need. Bank of America checked banks in July and found 31 percent of those banks prosecuted seeing increasing need for industrial and commercial loans for large/medium firms.

The release specifies that hotel development rates will certainly drowse off right in time as the video gaming industry cools down, Macau results of support and airliners stammer between in-favor and out-of-favor.

When it comes to swing elements, Bank of America  said, 'The greatest swing factors in the lesser 2014 expectation were in the religious, public safety, education, institutional, health, and amusement/recreation categories'.

No ETFs presently already existing for Non-Residential Construction, nevertheless, ISE provides a Global Engineering & Construction Index Fund (NYSE: FLM) that gives investors and traders direct exposure to the anticipated development in industrials; the FLM ETF is greatly heavy to the industrials many thanks to holdings in McDermott International (NYSE: MDR) and Fluor Corp.

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