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Builder sentiment in the market for single-family homes rose 1 point in July to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
It marks the seventh straight month of gains and the highest level since June 2022. A reading above 50 is considered positive sentiment.
Builders say low supply in the resale market is driving demand for new construction.

Builder sentiment in the market for single-family homes rose 1 point in July to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
It marks the seventh straight month of gains and the highest level since June 2022. A reading above 50 is considered positive sentiment.

Builders say low supply in the resale market is driving demand for new construction, but higher mortgage rates and supply-side challenges continue to put pressure on the market.
“Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop and start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle,” said Robert Dietz, NAHB’s chief economist.
The average rate on the popular 30-year fixed mortgage crossed over 7% briefly in May and then again at the end of June. It has only come down slightly in the last week. Those higher rates are straining affordability in the market, where prices for existing homes are rising yet again.
Of the NAHB index’s three components, current sales conditions in July rose 1 point to 62; buyer traffic increased 3 points to 40, the highest reading since June of last year; and sales expectations in the next six months fell 2 points to 60. The drop in expectations is due to that jump in interest rates and the resulting hit to affordability.
Despite higher mortgage rates, however, builders are using fewer incentives. Just 22% of builders reported cutting prices in July. This is down from 25% in June and 27% in May.
Sales of newly built homes in May, the latest reading available, jumped 13% compared with April and were 20% higher than May 2022, according to the U.S. Census Bureau. The median price was down over 7% from May of last year, but that median may be skewed by the mix of homes selling, which is currently leaning toward the lower end. More

Chipotle announced Tuesday it has signed an agreement with Kuwait-based Alshaya Group, its first-ever franchise partner, to open locations in the Middle East next year.
Chipotle currently has just over 50 locations in Canada and Europe. All are company owned and operated, as are its roughly 3,200 U.S. locations.
CEO Brian Niccol said the initial plan calls for two locations each in Dubai and Kuwait.

Chipotle logo is seen near the restaurant in Chicago, United States on October 19, 2022. 
Jakub Prozycki | Nurphoto | Getty Images

Chipotle announced Tuesday it has signed an agreement with Kuwait-based Alshaya Group, its first-ever franchise partner, to open locations in the Middle East next year.
Chipotle currently has just over 50 locations in Canada and Europe. All are company owned and operated, as are its roughly 3,200 U.S. locations. The Alshaya agreement marks the first time Chipotle has enlisted a local franchise retail operator as it moves into a new market.

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Chipotle CEO Brian Niccol told CNBC in an interview that the initial plan calls for two locations each in Dubai and Kuwait, with exact locations yet to be determined.
The Alshaya Group, which works with other major brands including Starbucks, Shake Shack and Texas Roadhouse, was the right fit for the deal given its proven market experience and commitment to Chipotle’s “Food with Integrity” proposition, Niccol said.
Keeping ingredients fresh and real, with local menu tweaks that echo the U.S. experience will be key, he added.
“They’ve got great brands, great operations, great people programs, which just gave us confidence that they’d be able to execute the Chipotle proposition effectively in the Middle East,” Niccol said.
In evaluating the Middle East market, Niccol said it was important to partner up to ensure success in everything from real estate to hiring to supply chain.

A Chipotle advertisement in Arabic to announce the Company’s partnership with Alshaya Group.
Source: Chipotle

Niccol said if the first few Middle East locations are successful, there will hopefully be hundreds more in the region down the line. He added the agreement could serve as a new model as the company looks to other markets.
“As we look around the world, we’ll be evaluating all the elements of what makes Chipotle great and if there’s an area where we believe we need a partner, then we’ll consider a partner for it,” Niccol said.
While the brand has enlisted a franchise partner in this specific expansion journey, don’t expect the franchising opportunity to arise in the U.S. Niccol said there is “no intention” to pursue that path right now.
“Our return on invested capital in the U.S. is industry-leading,” he said. “We’ve got the balance sheet and capital available where we can handle the growth with our own capital capability, and I think we’ve demonstrated the ability to operate restaurants effectively.”
Chipotle stock is up over 50% in 2023 and is one of the best performers in the restaurant sector. More

United Airlines will add flights to Tokyo, Manila and Taipei.
United and its rivals have been beefing up international travel in response to a surge in bookings.
The airline’s Asia service, excluding China, will be 40% larger than in 2019.

A United Airlines plane sits on the tarmac at San Francisco International Airport.
Justin Sullivan | Getty Images

United Airlines on Tuesday mapped out another expansion of Asia flights in the coming months, part of its push to capitalize on a boom in long-haul international travel that has helped drive airlines back to profitability after the Covid-19 pandemic.
International travel bookings surged this year, airline executives have said, as travelers seek long-distance trips they put off during the pandemic amid a web of travel restrictions and concerns about the virus. Airlines have been beefing up their schedules in response.

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“In general, the Pacific is as strong if not stronger than the Atlantic is today,” Patrick Quayle, United’s senior vice president of global network planning and alliances, told reporters. United announced new flights to New Zealand and Australia in April.
Starting Oct. 29, United will fly daily nonstop flights between San Francisco and Manila, becoming the only U.S. airline to offer nonstop service to the Philippine capital from the continental U.S. It will use its largest aircraft, a Boeing 777-300ER, for the route.
The carrier will also add a second nonstop flight between San Francisco and Taipei, Taiwan, also starting Oct. 29, and it plans to resume service to Tokyo’s Narita Airport from Los Angeles in addition to flights between Los Angeles and the more city-centric Haneda International Airport.
Quayle said Tokyo flights have been in high demand since Japan lifted travel restrictions earlier this year.

China service still challenged

Still, there are constraints to United’s growth in China, including Russian airspace restrictions. Quayle said as a result, United won’t resume other routes like Newark Liberty International Airport to Hong Kong. The airline will offer Los Angeles-to-Hong Kong flights, however, bringing its daily nonstop service to Hong Kong to three flights a day including flights from San Francisco.

He said United and other airlines are in communication with the U.S. government about negotiations with Chinese counterparts on adding back service.
There are 312 flights scheduled between the U.S. and China between June and the end of August this year, down from more than 4,800 in 2019, according to aviation data firm Cirium.
As of the upcoming winter, United’s trans-Pacific flying will be about flat compared with 2019, but about 40% larger when stripping out China service, a spokeswoman said.

International at Newark

United is weighing schedule cuts at its Newark hub as it grapples with bad summer weather, congestion and a shortage of air traffic controllers in the area. However, Quayle said that won’t affect international service.
“What our goal is is to operate a reliable consistent operation globally from Newark,” he said. “We’re not going to cut back from the international, but we obviously will make some changes.”
United reports quarterly results after the market closes on Wednesday. Executives are likely to outline changes that they’re considering at Newark during a conference call on Thursday morning at 10:30 ET. More

An offer to cruise around the world for three years — which appeared at risk of running aground earlier this year — now is boasting of a bigger ship. But the prices are steeper, too.
Miray Cruises is operating the 130,000-mile Life at Sea cruise, set to begin in November in Istanbul, aboard the boat MV Lara.
The initial plan to use another vessel was scrapped following a dispute with a prior management team over its seaworthiness.

MV Lara Cruise Ship
Courtesy: Miray Cruises

A unique offer to cruise around the world for three years — which appeared at risk of running aground earlier this year — now is boasting of a bigger ship.
But the prices are also higher.

And some passengers who have already booked berths on the 130,000-mile cruise set to sail in November — as well as would-be passengers — told CNBC they are concerned about another new wrinkle in the sales pitch: the requirement that they board the ship MV Lara at a port outside the United States.
That requirement would let Life at Sea Cruises, and its parent company Miray Cruises, avoid paying for a performance bond required by the Federal Maritime Commission for cruise ships embarking passengers at U.S. ports.
Such bonds reimburse U.S.-boarding passengers if cruise operators fail to complete the booked trips.
In March, Life at Sea originally offered what it called the “world’s first — and only — three-year cruise” aboard the prior ship, MV Gemini.
Prices started at $29,999 per year for individuals sharing an inside cabin for the cruise, ramping up to nearly $109,999 per year for a larger suite, with Gemini expected to visit 375 ports in 135 countries and seven continents after setting sail Nov. 1. Gemini had room for up to 1,074 passengers.

Two months later, customers who had signed up for the voyage were startled to learn that Mikael Petterson, the then-managing director at Life at Sea, and the rest of his team had left the Miray subsidiary amid a dispute over whether the Gemini was qualified to handle the trip, and the status of an FMC bond.
Petterson notified Facebook followers of the trip in May that he believed the Gemini “is completely unseaworthy and will never complete a world cruise.”
“I decided to refund everyone their credit card deposits 3 weeks ago,” Petterson wrote in a public post on Facebook.
Petterson’s comments dismayed many people who had signed up for the trip, including one man who had begun the process of selling his home to pay for it.
Barbara, a Florida resident who had put down a deposit for the cruise, backed out of the trip in May, following the example of a number of other passengers. She requested that her last name not be used in this article due to privacy concerns.
“Rather risky for me,” said Barbara, when asked why she pulled out. She said she rebooked on a competing three-year cruise with Victoria Cruises, aboard the Majestic.
At the time, Miray Cruises disputed Petterson’s characterization of Gemini, and also vowed that the trip would proceed as planned, although it was not clear whether that would involve Gemini or another ship.

View of a cabin onboard the MV Lara cruise ship.
Courtesy: Miray Cruises

Miray Cruises also sued Petterson in Florida state court with claims that include defamation and interfering with business relationships.
Petterson, who is fighting those civil claims, declined to comment to CNBC.
“The unseaworthy comment never had any validity to it,” Miray CEO Kendra Holmes told CNBC.
“The MV Gemini has always been considered seaworthy as evidenced by the [Passenger Ship Safety Certificate] certification, which is issued after inspections by the class society,” she said. “Just last week, the Gemini was inspected as scheduled and the PSSC certification was renewed.”
Despite that, Miray Cruises is not using the Gemini, recently telling customers that the company will instead put them on the Lara, which has space for 1,250 passengers. Miray said it is offering 85% of the ship’s available berths “so that our residents feel comfortable and can enjoy all the public spaces without feeling overcrowded,” Holmes said.
“Shortly after announcing in March to unprecedented positive reception, we knew we would have to acquire a larger ship to accommodate the high demand for our voyage,” she said.
Holmes said that passengers who originally booked trips when the Gemini was the ship planned for use “have been converted to MV Lara at the price they locked in their cabin at originally.”
But, she added, “As with any voyage, prices increase at a steady rate and so the sooner residents book the voyage with us, the lower the price will be.”

How much more

Shirene Thomas, a North Carolina resident who has booked passed on a three-year Life at Sea cruise, operated by Miray Cruise
Source: Shirene Thomas

As of now, Miray was offering a berth to individuals who would share an inside cabin for $38,513, a more than 28% hike in the price for that option aboard Gemini. Outside cabins and balcony cabins likewise have increased in price.
One woman who booked a berth aboard Gemini months ago at the initial price offered, Shirene Thomas, told CNBC that she is in the process of making her final payments for the cruise now that Lara will be the ship.
Thomas, of Wilmington, North Carolina, has dipped into her retirement money to pay for the trip, and has sold and donated most of her belongings.
While she almost pulled out of the trip after controversy over the initial plan to use the Gemini for the cruise, Thomas is now committed to the voyage.
Thomas, who is in her 50s, is retired from a career in social services, and has been an avid traveler all her life. After college, she tried a cruise as her first official vacation from work and has been a cruise junkie ever since. Although she has lived in or visited close to 70 countries, many more remain on her bucket list, and the 135 countries included in this venture will hit all of them, and then some.
“I understand turbulence with staff turnover left some understandably on edge, but I feel the Life at Seas team has been honest, transparent and exceedingly communicative with everyone about the situation,” Thomas said. “They’ve held countless webinars to answer questions and quell people’s fears and been very approachable.”
Although she’s nervous about what to expect on the voyage, she said “those fears are overshadowed by the excitement of being a pioneer aboard this first-ever world-residence-at-sea adventure.”
Thomas said she was particularly “looking forward to the volunteerism and humanitarian opportunities that are one of the missions of Life at Seas.”
But, given the absence of a U.S. performance bond, she also is using her credit card to make payments for the cruise, hoping it will provide her with some recourse to recoup her money if the cruise is aborted.
“I know nothing is 100% safe,” Thomas said.
But, she added, “Everything points to the real deal.”
“I trust they would give us our money back if it doesn’t go,” Thomas said.

From Miami to Istanbul

Other people CNBC spoke to raised concerns about the lack of a performance bond held by Miray Cruises, which is now encouraging passengers to begin their journey on Nov. 1 at Istanbul with the opportunity to board four days later in Barcelona.
Miray Cruises had originally offered customers the opportunity to board Gemini in Miami.
But by removing that U.S. port as an option, the company avoided the need to pay for a performance bond.
“There are no bonding requirements for a cruise anywhere other than in the U.S. and if you were to travel with Miray Cruises or any other cruise line from a non-U.S. port, you would not be bonded,” said Holmes, the Miray CEO.
“Additionally, an FMC bond doesn’t cover everyone on the ship — it only covers passengers who embark in the United States,” Holmes added.
“When we first started taking applications for residency, we realized that the number of residents who requested embarkation at a U.S. port was extremely low and that most of our U.S. residents anticipated embarking in Europe. That number had dropped even more as people do not want to miss the first 15 days onboard with their new neighbors,” she said.
When asked why Miray, after initially offering embarkation in Miami, switched to Freeport, Bahamas, Holmes said, “Most of our residents chose to embark in Europe — either joining us for our planned celebrations pre-sailing in Istanbul or at our second embarkation point in Barcelona.”
She said fewer than a dozen passengers, out of hundreds, requested an embarkation in Miami.
“Given this low number and the flexibility of these residents, we moved the embarkation to Freeport, Bahamas, to give us even more days in South America for our itinerary,” Holmes said. More

Marriott and MGM Resorts International announced a partnership Monday to link their loyalty programs.
Under the deal, MGM guests in the United States can earn Marriott Bonvoy rewards points and Bonvoy members will in turn have access to 17 MGM properties when they spend their points.
Las Vegas is one of the top destinations in the United States for conventions, conferences and meetings.

Marriott and MGM Resorts International announced a partnership Monday to link their loyalty programs and give customers more options for cashing in.
Under the deal, MGM guests in the United States can earn Marriott Bonvoy rewards points and Bonvoy members will in turn have access to 17 MGM properties when they spend their points.

MGM’s 40,000 rooms will increase Marriott’s global portfolio offerings 2.4%.
The partnership seeks to capitalize on frequent or business travelers, who can be fiercely loyal to certain hotel brands in effort to rack up rewards. Those loyalty programs drive business and help differentiate competitors at a time when travel is continuing to rebound from a pandemic pause.
“The value is in the quantity and the quality of the customer,” MGM CEO Bill Hornbuckle told CNBC in an interview Monday.
Bonvoy has more than 180 million members. If members want to use their reward points for a stay on the Las Vegas Strip, currently, their only hotel option is the Cosmopolitan, which MGM bought in 2022.
When the new partnership launches this fall, Bonvoy members will be able to redeem their rewards at 12 additional resorts on the Strip and five more MGM resorts nationwide.

Marriott CEO Tony Capuano said MGM Resorts brings a wealth of intellectual property to the portfolio as well as entertainment, high-end culinary options and other one-of-a-kind experiences.
“It’s really an exciting opportunity for our membership,” Capuano said.
Capuano said last month that the global hotel chain raised its revenue per available room forecasts based on a 26% hike in group business this year.
The convention business has yet to fully recover from its Covid-19 pandemic lows. Still, the conference calendar is packed, and there’s optimism that group business, along with increased international visitation, could push results higher.
Las Vegas is one of the top destinations in the United States for conventions, conferences and meetings.
When asked whether the Bonvoy program would give MGM a competitive advantage in group business against competitors such as Caesars, Hornbuckle said, “The answer is absolutely, unequivocally yes.”
Casinos, meanwhile, are facing tough year-over-year comparisons for the second half of 2023, and the partnership with Marriott could deal MGM a competitive advantage in its sports betting business, BetMGM, co-owned by Entain.
Customers of MGM’s sportsbook will earn Bonvoy points on some transactions, and Bonvoy members will see MGM sportsbooks marketing on the Marriott site.
BetMGM CEO Adam Greenblatt said in a news release announcing the deal that it will create a “truly robust rewards program that connects our players and Marriott guests to the full BetMGM omnichannel experience.”
— CNBC’s Dawn Giel, Jessica Golden and Kasey O’Brien contributed to this report. More

Eli Lilly said it filed an application for full U.S. Food and Drug Administration approval of the company’s Alzheimer’s treatment, donanemab.
The pharmaceutical company expects the agency to make a decision by the end of the year.
Eli Lilly also presented the final results from an 18-month phase three trial on the monthly antibody infusion, which showed the drug significantly slowed disease progression.
Eli Lilly is among the pharmaceutical companies racing to market new treatments for the mind-robbing disease after Eisai and Biogen’s drug Leqembi won FDA approval this month

Eli Lilly on Monday said it applied for full U.S. Food and Drug Administration approval of its Alzheimer’s treatment, donanemab, and expects the agency to make a decision by the end of the year.
The application is based on positive phase three clinical trial results on donanemab, which significantly slowed the progression of Alzheimer’s in patients at the early stages of the mind-robbing disease.

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The results also showed that treating patients who are at the earliest stages of the disease can slow Alzheimer’s progression by around 40% to 60%.
“The earlier you begin to use the drug perhaps the more slowing that can be,” Eli Lilly CEO David Ricks said in an interview Monday on CNBC’s “Squawk on the Street.”
Eli Lilly is among the pharmaceutical companies racing to market new treatments for the disease after Eisai and Biogen’s drug Leqembi won FDA approval this month. The agency’s signoff on Leqembi was a milestone in the treatment of Alzheimer’s, even though the drug and donanemab aren’t cures.
Both treatments are monoclonal antibodies that target amyloid plaque in the brain, considered a hallmark of the disease.
An FDA approval of Eli Lilly’s donanemab would expand the treatment options for the more than 6 million Americans of all ages who have Alzheimer’s, the fifth-leading cause of death for adults over 65.

The company did not disclose how it would price donanemab after a potential approval.
But the Centers for Medicare & Medicaid Services has said Medicare will cover Alzheimer’s drugs – as long as they receive full FDA approval and health-care providers participate in a registry system that collects data on how the drugs work in the real world.
Ricks said the registry requirement appears to be a “pretty light touch” that doesn’t “take a lot of effort.” But he noted that the data that will be collected seems “pretty low value” in the process.
“So we hope to have that [requirement] rescinded in time and full coverage for donanemab when it’s approved,” Ricks told CNBC.

Positive trial results for Lilly’s Alzheimer’s treatment

Eli Lilly on Monday also presented the final results from the 18-month phase three trial of the monthly antibody infusion donanemab at the Alzheimer’s Association International Conference in Amsterdam. The results confirm the initial data the company released in early May. 
The final results also address a previous concern of the FDA, which rejected Eli Lilly’s application for expedited approval of donanemab in January. At the time, the agency asked the company for more data on patients who received the treatment for at least 12 months. 

Eli Lilly and Company, Pharmaceutical company headquarters in Alcobendas, Madrid, Spain.
Cristina Arias | Cover | Getty Images

The trial followed more than 1,700 patients in the early stages of Alzheimer’s who had a confirmed presence of amyloid plaque. Roughly half of participants received donanemab.
Patients who received donanemab demonstrated a 35% slower decline in memory, thinking and their ability to perform daily activities at 76 weeks — roughly a year and a half of treatment — compared with those who received a placebo. 
Patients at the earliest stage of the disease had a greater benefit after taking donanemab, demonstrating a 60% slower decline in cognitive function. 
The trial also found that patients who took donanemab were almost 39% less likely to progress to the next stage of Alzheimer’s disease.

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Almost half of patients – 47% – who received donanemab showed no disease progression a year after treatment began, according to the final trial results. That compares with 29% for those who did not receive the drug. 
The Alzheimer’s Association, an organization that advocates for people who have the disease, said it “strongly supports” FDA approval of donanemab based on the positive results.
“The results illustrate that initiating treatment as early as possible enables the possibility of a bigger beneficial effect, but also that there is potential for slowing of disease progression even when treatment is started later in the disease progression,” said Maria Carrillo, chief science officer of the Alzheimer’s Association, in a statement. 

Benefits and side effects of donanemab

More than half of patients completed the treatment in the first year, and 72% completed it in 18 months due to clearance of amyloid plaque. 
The Alzheimer’s Association said that data point is “notable for patients, families, prescribers and payers because patients may not need to receive this treatment on an ongoing basis for the rest of their lives.” 
Donanemab cleared amyloid plaque at six months in 34% of patients who had intermediate levels of a protein called tau, which can become toxic and kill neurons.
At 76 weeks, donanemab cleared the plaque in about 80% of patients with the same tau levels. That compares with 0% plaque clearance among those who took the placebo over the same time period.
But donanemab’s benefits will have to be weighed against the risks.
Drugs that target and clear amyloid plaque can cause brain swelling and bleeding in patients that in some cases can be severe and even fatal.
The trial results said nearly 37% of people on donanemab had these side effects, called amyloid-related imaging abnormalities, compared with nearly 15% who received a placebo. Three trial participants died from those side effects, according to Lilly.
Those side effects have also been observed in Leqembi. More

Nirsevimab is the first shot approved by the FDA to protect all infants against RSV regardless of whether they are healthy or have a medical condition.
Nirsevimab is administered either before or during an infant’s first RSV season.
RSV is the leading cause of hospitalization among children less than a year old, according to scientists.

Blood sample for respiratory syncytial virus (RSV) test
Jarun011 | Istock | Getty Images

The Food and Drug Administration on Monday approved AstraZeneca and Sanofi’s shot that protects infants and toddlers against respiratory syncytial virus, which is the leading cause of hospitalization among babies in the U.S.
Nirsevimab is the first shot approved by the FDA to protect all infants against RSV regardless of whether they are healthy or have a medical condition.

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The FDA approval of nirsevimab, sold under the brand name Beyfortus, comes ahead of RSV season this fall. The Centers for Disease Control and Prevention’s panel of independent experts will meet in August to make recommendations on how the shot should be administered by doctors.
Another shot called palivizumab is already on the market, but it is given mainly to infants who are preterm or who have lung and congenital heart conditions that put them at high risk of severe disease. Nirsevimab is also administered as a single injection. This is a major advantage over palivizumab, which is administered monthly throughout RSV season.
Nirsevimab is administered either before or during an infant’s first RSV season. Toddlers up to two years old who remain vulnerable can also receive the shot during their second RSV season.
RSV is a major public health threat that kills nearly 100 infants annually, according to a study published in the medical journal JAMA Open Network last year. The virus is the leading cause of hospitalization among children less than a year old, according to a study published in the Journal of Infectious Diseases.
A surge in RSV infections last fall overwhelmed children’s hospitals across the U.S. and led to calls for the Biden administration to declare a public health emergency in response.

Nirsevimab was up to 75% effective at preventing lower respiratory tract infections that required medical attention among infants and 78% effective at preventing hospitalization, according to a FDA review.
The FDA did not identified any safety concerns in its review of nirsevimab, though other monoclonal antibodies have been associated with allergic reactions such as skin rashes.
Nirsevimab is a monoclonal antibody that has a similar function to a vaccine. Vaccines stimulate the immune system to produce protective antibodies, while shots like nirsevimab deliver those antibodies directly into the bloodstream.
The fact that nirsevimab is regulated as a drug has created some uncertainty about whether the federal Vaccines for Children program will provide the shot for free to families who face financial difficulties. The CDC advisors are expected to discuss this issue at their August meeting.
Families might have two options to protect their infants this fall. Pfizer has developed a vaccine that protects infants by administering the shot to the mother while she is pregnant. The FDA’s independent advisors recommended Pfizer’s vaccine in May. The agency is expected to make a final decision on whether to approve the shot in August. More

Private investment in space companies, especially from venture capital, showed “signs of stabilization” in the second quarter after steady declines over the past year, according to a new report.
The report by New York-based Space Capital on Q2 investment pointed to indicators that the space market looks to be near a bottom.
Space Capital noted that growth-stage investments are outstripping late-stage, “signaling a healthy top-of-funnel” in the sector’s economy.

Senior satellite technician Chris Summers completes the final pre-flight checks on satellites Kepler-16 and Kepler-17.
Kepler Communications

Private investment in space companies, especially from venture capital, showed “signs of stabilization” in the second quarter after steady declines over the past year, according to a report Monday by New York-based Space Capital.
Investment in space companies had dropped steadily since its peak in 2021, as companies felt the macroeconomic effects of a tightened funding environment and rising interest rates. Layoffs and cost-cutting arrived at many space companies in recent months, and M&A activity in the sector is expected to heat up as valuations come down.

But Space Capital’s Q2 report pointed to indicators that the space market looks to be near a bottom, highlighting the return of hiring for space jobs to 2020 levels.

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“The reset in the financial markets has brought about healthier market dynamics, enabling disciplined investors to identify opportunities and invest in high quality companies at lower valuations,” Space Capital managing partner Chad Anderson wrote in the report.
Space infrastructure companies brought in $4.9 billion of private investment in the second quarter, including the close of Maxar’s recent go-private sale at a $4.1 billion equity value.
Though the Maxar deal made up the bulk of the Q2 total, Space Capital noted that growth-stage investments are outstripping late-stage, with raises in the former category making up 74% of total equity rounds, “signaling a healthy top-of-funnel” in the sector’s economy.
The quarterly Space Capital report divides investment in the industry into three technology categories: infrastructure, distribution and application. Infrastructure includes what would be commonly considered as space companies, such as firms that build rockets and satellites. More