Construction Spending Showing Weakness
-- February 4, 2004
Construction spending expanded by 0.4% in December, according to the latest government report. That's far below estimates calling for a 0.8% pop -- and could signal weakness ahead. Take a look...
As this graphic clearly shows, growth in construction spending -- which includes both residential and commercial construction -- is slowing. In September, for example, construction spending grew at a 1.4% clip, followed by 1.3% in October. Both November and December marked even further slides.
But that's not all. The report also showed that construction in key sectors of the economy are taking big hits. Healthcare construction, for example, tumbled 1.8% in December ... office construction fell 2.7% ... and manufacturing dropped 4.6%, marking the fourth straight monthly drop!
Keep an eye on trends in construction spending because they can foretell trouble down the road. That's because both consumers and businesses may pullback on constructing new buildings if they think future growth prospects look grim.
Residential Helps Boost December Construction Spending