Monday, January 5, 2009
Total construction spending has been flat for most of the past year. The decline in residential construction spending has slowed significantly in recent months, and is now at such a low level compared to the rest of the economy (about 3% of GDP) that further declines, if they occur, are almost irrelevant to the economy's overall health. Many have worried in recent months that nonresidential construction would be the next shoe to drop, but so far that has not occurred. Growth in nonresidential construction has slowed, but it was still growing as of the November data released today.
Posted by Scott Grannis at 1:52 PM