The indefatigable Calculated Risk is reporting via the Census Bureau that outlook for construction spending remains weak. Overall, residential construction spending is down 61.5% from the 2006 peak. While non-residential spending is up slightly, but still down 22% from it's peak in October 2008. Sadly, the trend in non-residential construction points to further declines.
On the bright side (?), CR is predicting very modest growth (read: sluggish) in residential investment for 2010. I'll keep an eye out for the new Architectural Billings Index (ABI) for updates. An uptick in the ABI generally means construction spending will be up a few months down the road as architecture billings are a leading indicator for construction spending. So far, the index has been stuck in negative territory.
Tuesday, February 2, 2010
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