Construction spending continues to improve

Construction spending continues to improve: over the past year, total spending on residential and nonresidential construction is up 7%, with residential spending up at 9.5% annualized pace over the past six months. The sector has been very weak for the past several years, but is now enjoying a nice rebound that should have legs. Construction subtracted from overall economic growth for roughly 5 years, but now it is contributing, albeit only very marginally.