Total Construction Spending

September 28, 2010

Construction spending is still declining, but the 1-percent-plus drops in the last two months overstate the pace of decline. A further decline of 1 to 2 percent is expected into the spring in addition to the 22 percent cumulative fall so far. Expansion will resume in home construction after the year-end pause. Rising starts in recent months signal that the nonresidential building plunge is over. However, the recession has finally reached heavy construction, which has begun to slip lower.