Monitoring Government Construction Statistics Can be Revealing

Wed, 13 Jan 2010 13:49:50 GMT

Predicting the future of the economy is more an art than a science. Documenting the performance of the economy, however, is simply an accounting process, and like much of accounting can indicate disheartening results.

The Commerce Department recently released the November construction spending statistics. It reported that construction activity, despite the massive about of stimulus spending fell for a seventh consecutive month. Spending on both residential and commercial project declined. As expected, spending on housing fell. This time by the largest amount in six months. Non-residential construction also fell for the eighth consecutive month. Although government statistics have given economists the confidence to state that the recession is over, the weakness in the construction sector dims the prospects for a recovery that is strong enough to reduce unemployment and lift consumer confidence.

Schinnerer's RM Blog - spending tag

Monitoring Government Construction Statistics Can be Revealing