US Construction Spending Contracts YoY For First Time Since 2011

For the first time since Dec 2012, US Construction spending declined for two consecutive months (sliding 0.4% in October versus an expectation of a 0.5% rise). But, perhaps rather shockingly for many, US Construction Spending declined 0.2% year-over-year for the first time since 2011, with public construction outlays at ther lowest since March 2014.

Not a good sign (but time to raise rates?)

Chart: Bloomberg

The last time US construction spending decline on an annual basis, the economy entered recession...

Chart: Bloomberg

Both private and pubic construction spending declined (-0.2% and -0.9% respectively) with US public construction outlays at their lowest since March 2014.

Time to raise rates, borrow loads of debt (at higer rates), hike taxes, and spend it on bridges and tunnels?