US Product Rental and Leasing Sector NAICS 532

Jun 6, 2026 - Construction Spending Beats Estimate

• The total value of US construction put in place rose 0.4% in April 2026 compared to the prior month, according to the US Census Bureau. Residential spending grew 0.8%, and nonresidential spending increased 0.1%. Overall, construction spending in April surpassed economists' expectations of just 0.2% growth. A 1.4% increase in single-family project spending led April's growth, even as the conflict with Iran stoked inflation and sent the 30-year fixed mortgage rate higher. Spending on private nonresidential buildings declined 0.2% in April. Private nonresidential structure spending has fallen for nine consecutive quarters, despite the data center boom. Bright spots in April nonresidential building construction included a 1.9% rise in public safety project spending and a 1% increase in offices (a category that includes data centers). Lodging, educational, and healthcare also saw slight upticks. Infrastructure spending in April was led by conservation and development, power, and highway and street projects.
• US manufacturing activity expanded in May 2026, marking its highest level since May 2022, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in May rose to 54% from a reading of 52.7% in April. A reading above 50% indicates manufacturing expansion. May's New Orders Index increased by 2.7 percentage points to 56.8%. The May Production Index rose 0.9 percentage points to 54.3%. Of the 18 manufacturing industries tracked by the ISM, 16 reported growth in May: printing & related support activities; textile mills; nonmetallic mineral products; paper products; electrical equipment, appliances, and components; plastics & rubber products; primary metals; miscellaneous manufacturing; computer and electronic products; furniture and related products; machinery; transportation equipment; petroleum and coal products; chemical products; fabricated metal products; and food, beverage & tobacco products. Wood products manufacturing was the only industry to report a contraction in May. Manufacturing activity is a leading demand driver for equipment rental and leasing.

• According to the Associated Press, rising travel costs driven by higher fuel prices, inflation, and global uncertainty are likely to weigh on travel spending as consumers rethink vacation plans. Overall travel spending is expected to grow just 1% in 2026, according to the US Travel Association. Many Americans are shifting to shorter, closer-to-home trips or cutting travel altogether, reducing the need for extended car rentals. Higher gasoline prices and rising costs for airfare, lodging, and dining are forcing travelers to seek lower-cost alternatives, including buses, trains, or shorter driving distances. Analysts describe a "K-shaped" trend, with higher-income households maintaining travel habits while lower-income consumers scale back. A reduction in US travel spending could soften rental car demand in price-sensitive segments.
• Two leading players in the equipment rental industry posted solid Q1 2026 results, driven by strong year-over-year revenue growth. United Rentals reported total revenue up 7.2% to $4.0 billion, with rental revenue rising 8.7% to $3.4 billion, driven by higher rates, fleet expansion, and improved utilization. Net income increased 2.5% to $531 million despite some margin pressure. Having completed the integration of its H&E Equipment Services acquisition, Herc Rentals delivered stronger top-line gains, with total revenue jumping 32.3% to $1.1 billion and rental revenue up 32.7% to $981 million. Large construction projects and network expansion supported growth, though profitability declined as Herc's net loss widened to $24 million from $18 million a year earlier.