Construction spending grew at 13.7% YoY in July. It has only grown at a faster pace than that once - at the very peak of the idiocy in Q1 2006.
Nope - no bubble here...
[6]
So that got us wondering... how is it that Construction Spending is surging as Lumber Prices are collapsing? (unless homes are now made of Twitter share certficates).
The answer is simple - lag... and we have seen this picture before... and it did not end well.
Clearly, the exuberant construction industry jumps on Fed-induced signals of recovery and mal-invests en masse... until reality bites again.
Charts: Bloomberg
