Construction spending declines are moderating

Construction spending is old news, since it only covers data through July. But total construction spending held fairly steady for the month, an it's been several months that this has been the theme. When compared to the economy, residential construction is almost as small as it's ever been. That tells me that the drag from construction cutbacks has mostly run its course. Without the negative of declining construction spending, the economy is much more likely to avoid a recession. In other words, the worst is most likely behind us.