Construction Spending

RECENT NEWS
FX Street  May 2  Comment 
Market wrap US equities were boosted by a strong survey (ISM) of manufacturing activity, easing... For more information, read our latest forex news and reports.
Clusterstock  May 1  Comment 
Construction spending came in very weak this morning. Why? Well as the text shows below, private spending was very strong in March, but public spending (roads and bridges and schools) was very weak. Sequentially, March was down solidly from...
Benzinga  May 1  Comment 
Construction spending tracks the level of both residential and non-residential construction activity in the United States. The headline figure measures the percentage change from the prior month. This indicator is important because the...
StreetInsider.com  May 1  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Economic+Data/Mar.+Construction+Spending+Rose+0.1%25%2C+vs.+Cons.+%2B0.5%25/7388364.html for the full story.
MarketWatch  May 1  Comment 
Outlays for U.S. construction projects rose a slight 0.1% in March, the Commerce Department reported Tuesday. While it was the first increase in construction spending in three months, the gain was well below analysts' expectations of a 0.5% rise....
Clusterstock  May 1  Comment 
UPDATE: Construction spending increased by 0.1 percent in March, reversing a revised 1.4 percent decline in February. Click here for live updates > The Census Bureau said spending increased to an annual pace of $808.1 billion during the...
The Australian  Apr 3  Comment 
BIS Shrapnel expects the nation's civil construction spending to peak in four years as the heat comes out of a 15-year boom.
Reuters  Apr 3  Comment 
The pace of growth in manufacturing picked up last month, even as measures of new orders and exports eased, underscoring how the economy is recovering at a gradual clip.
Forbes  Apr 2  Comment 
Stocks continued last weeks rally as better than expected manufacturing data outshined a drop in construction spending. Heading into the last hour of trading, the Dow climbed .6%, while the S&P 500 and Nasdaq added one percent.
Bloomberg  Apr 2  Comment 
  U.S. Stocks Rise as Factory Report Offsets Construction ...




RELATED WIKI ARTICLES
 
Construction spending is a measure of new construction in the economy. It reports the month-over-month and year-over-year changes in total construction spending by both the private and public sector.

In the U.S. it is a monthly statistics released by the Department of Commerce and is broken down by residential construction, non-residential construction and public expenditure (government). Historically, the number has been volatile on a month to month basis to have an impact on the markets. However, data from several months is often used to identify trends in the sector.

In 2009, the negative growth of overall construction outlays is primarily attributable to a decline in residential outlays. Nonresidential and public outlays remain positive. ‎
In 2009, the negative growth of overall construction outlays is primarily attributable to a decline in residential outlays. Nonresidential and public outlays remain positive. [1]

Why is it important?

Construction spending is affected by interest rates, business cash flow and even federal fiscal policy. Therefore, trends in construction spending has a direct bearing on stocks, bonds and commodities. Construction spending data helps investors to determine how stocks of home builders and large-scale construction contractors will do. Commodity prices like lumber are also sensitive to housing industry trends.

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