April 13, 2012
Construction spending has one of the biggest impacts on economic indicators, as the construction industry is huge. Construction spending gives us a picture of how well the construction industry is doing in the economy. Construction, as a major employer is tied to employment and to the housing industry statistics. The value of construction includes key cost categories such as labor, materials, professional services, and overhead costs.
The following graph from the US Census Bureau shows the trend in construction spending. The data report indicates that in February 2012, construction spending was at almost $809 Billion, +5.8% increase over February 2011 data. This represented a $45 Billion increase in construction spending year over year. Private construction spending accounted for almost a $49 Billion net increase, while public construction spending dropped by nearly $4 Billion.
Overall, the construction industry is on the road to recovery it seems, but still not near the highs of over $1.2 Trillion in construction spending back in 2006.
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