Wednesday, February 1, 2012

Construction begins to recover

As these charts show, the construction industry has suffered a devastating decline since peaking in late 2005. After six years of contraction, the sector has shrunk by two-thirds relative to the size of the economy. But now it looks like the worst is over, and a slow and gradual recovery is beginning. It will likely be many years before the industry fully recovers, but along the way we could see some pretty spectacular growth rates. I expect it will be slow progress this year, but picking up lots of speed by next year.

1 comment:

Benjamin Cole said...

Some good news:

Demand for Small Business Loans Most Since 2005
Posted by: John Tozzi on January 30, 2012

Banks reported the greatest increase in demand for loans from small companies since 2005, the according to the Federal Reserve’s survey of senior loan officers out today. That may be good news for job growth later in the year. From Bloomberg News:

While business demand for borrowing increased, banks reported “little change in standards on commercial and industrial loans but a continued easing of pricing terms,” the survey said. The pickup in business lending was a reversal of the previous survey, released in November, in which more banks reported a drop than an increase in demand.