Status and Forecast

September 28, 2010


Manufacturing-construction spending has improved for four months. The continuing declines in factory employment suggest that the construction activity is still largely renovation. Significantly more capacity-addition projects are expected by spring, when factory capacity utilization nears 80 percent, which could set off a surge in construction that will persist for several years. Even so, it will stop well short of the peak level in the late 1990s.

Manufacturing-Construction Spending
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