US construction spending hits highest level in 10 years

[DonViejo]

Source: Associated Press



TUESDAY, JAN 3, 2017 10:31 AM EST

WASHINGTON (AP) — U.S. builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade.

Construction spending rose 0.9 percent in November after a 0.6 percent increase in October, the Commerce Department reported Tuesday. The increase reflected solid gains in home construction, nonresidential building and government construction activity.

The gains in all three categories pushed total construction to a seasonally adjusted annual rate of $1.18 trillion, the highest point since April 2006 when a housing boom fueled building.

Economists believe construction will continue to show gains in 2017, reflecting a strong job market with unemployment at the lowest point in nine years.


Read more: http://www.salon.com/2017/01/03/us-construction-spending-hits-highest-level-in-10-years/

[ghostsinthemachine]

1. Once the deregulate the finance industry

There will be a flurry of activity, refinancing etc for three years. Then the rug (again) gets pulled out from under everyone. Same as it ever was, except the down cycle was ten years, not seven, this time.

[Lanius]

2. Unemployment is at its "lowest point in nine years"

but let's talk about the under-employment rate. There are plenty of college graduates in my home state who have jobs but they're working at coffee shops and restaurants (multiple part-time, non-benefited jobs) when they want to start real careers in their chosen fields.

[tenorly]

3. Good point.

It should also be noted that the spending figures are in nominal, not real terms. Adjusted for costs, real construction spending is still 20% below its 2006 record.

It is, however, 20% above its 2010 lows in real terms.