Monday, October 4, 2010

Construction spending edges up in August with private sector declines offset by government

Click the link above for an article from the Sun re: construction spending. It reports that construction spending rose in August. "The weakness in construction activity has been a major drag on the overall economy. Given continuing problems in housing and commercial real estate, analysts are not looking for a sustained rebound in the building industry for some time to come." the numbers might be deceiving however as "In August, private construction fell for a fourth consecutive month, a decline of 0.9 percent that left private sector building at an annual rate of $498.2 billion, the slowest pace since January 1998.Residential construction was down 0.3 percent to an annual rate of $238.5 billion. Residential spending has been down every month starting in May. Housing activity received a temporary boost in the spring as homebuyers rushed to take advantage of a homebuyer tax credit before it expired on April 30. But since that time, home construction has struggled."

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