What is Construction Spending?
The U.S. Census Bureau conducts a monthly survey that evaluates the private sector’s residential and non-residential spending as well as state and federal construction spending. The survey considers everything from labor, materials, and architectural and engineering work. This economic indicator focuses on new construction spends only.
Why is Construction Spending valuable?
Although these spending figures don’t have a major impact on financial markets they still provide valuable information into domestic economic growth. Typically, as the economy grows so does construction spending. When the economy slows, construction spending will also decline. It’s helpful to analyze the difference in Construction Spending breakdowns. Residential Construction spending can signal consumers’ confidence in their financial situations and the surrounding economy. While non-residential spending can encourage new jobs for contractors, technology firms, and banking opportunities. All of which stimulate the economy in their own ways.
What should you do?
Follow Construction Spending to see where growth is expected in the near-term. This is also a strong indicator to follow to have an insight into the economy’s health from both private and government viewpoints. Majestic’s CORE Report follows the Construction Spending; along with other indicators every week to see where the market stands.