Construction spending was up 1.1 percent in October the largest increase since May. That gives some analysts reason to think maybe the disappointing retail sales season-- the one that’s only a few days old?-- won’t hurt the economy as much as predicted.
So why all the construction activity?
Since May interest rates have steadily continued to decline more than a quarter of a percent-- which as I have talked about before can be very good for the real estate business.
Unlike existing home sales, new construction is a lynchpin of economic activity creating jobs and purchases at the local and national level. For example the sale of new light duty trucks can be a reflection of robust construction activity as tradesman buy trucks to sustain their business.
Construction spending for September was revised upward from a loss of .4 percent to a loss of .1 percent.
