Monday, November 1, 2010
Construction spending was flat in September, and remains weak overall. Residential construction as a percent of GDP has fallen to a new all-time low of just 2.2%, so even if activity in that sector continues to slide it will have very little impact on the economy as a whole. Growth in residential construction has been a mainstay of almost all recoveries in the past, with the current recovery being the notable exception. That's one more reason why this recovery has been and is likely to continue to be disappointing.
Posted by Scott Grannis at 10:44 AM