Thursday, July 1, 2010
Residential construction spending has firmed somewhat over the past year, lending credence to the argument that the housing market has bottomed, but it is such a tiny (2.4%) part of the economy now that what happens there is almost irrelevant to the economy's growth outlook. Nonresidential construction, somewhat surprisingly, has firmed in recent months, but I don't see a reason for this strength to continue in any meaningful fashion. The best that can be said about construction at this juncture is that it is not collapsing.
Posted by Scott Grannis at 9:51 AM