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Residential Construction Spending Drops Most Since July
Thanks to a 3.2% rise in state and local government spending - the most since 2009 - the "public" construction spending lifted the headline data to beat expectations overall. However, a small scratch below the surface an it is clear that residential construction spending is not playing ball. Having fallen for 3 of the last 4 months, residential construction spending dropped 0.5% (the most since July) and private construction spending overall (residential and non-residential) dropped 0.5% - the most since at least April.
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What you think people moose an wanna build houses in winter.
Bullish!! Oops I mean, Bullsh*t!!! Dow to 20,000, hold tight fellas.
You do know construction is seasonal? Activity rises in H1 and falls in H2.
October is up 17% YOY.
But residential permits are up!
Personally I agree with the part of the cycle, next step deep recession, then hyper inflation.
Permits are NOT construction.
Builders are seeing a likely collapse in housing prices over the next 1-2 years...hence, no residential construction.
No shit Sherlock.
Public construction could explode next year. In the Northeast there was a rush to initiate new building projects post-Sandy Hook to boost school security. In some areas there are 50-60% of schools planning projects next year. All have to be voted on and approved by state but the approval rate is typically over 90%. Many of these projects started as security projects that morphed into wish lists.
This trend is not likely to reverse until state budgets tighten.