Construction Spending in the U.S. Falls to Lowest Level in a Decade
Construction spending in the United States continues to lag on the recovery path, falling by 2.5 percent in December. The contraction is the largest since July 2010, dropping the reading to its lowest level since July 2000. While median survey estimates forecasted a 0.1 percent gain for spending, the decline places the value of all current projects down to a $787.9 billion annual rate. With foreclosures continuing at a steady clip and the unemployment rate commonly stuck above 9.5 percent month-over-month since September 2009, 2011 may prove to be a weak year for the construction industry as groundbreaking on new building projects, commercial and residential, appears primed to suffer. Overall, construction spending fell by 10 percent last year, after dropping by 15 percent in 2009. A total of $814.2 billion was spent in 2010, the lowest amount since 2000.
Written by Christopher Vecchio, DailyFX Research
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