Wednesday, July 1, 2009
Residential construction was still declining in May, but it has shrunk so much relative to GDP (it's now down to about 2.5% of GDP, the lowest reading on record) that a small decline hardly matters to the overall economy at this point. Nonresidential construction activity has held up better than most (including me) expected, however. Indeed, the fact that it is up 4% from the January low is rather impressive considering all the bad news that has been out there since last September.
Posted by Scott Grannis at 10:57 AM