Surprising Up-tick in Construction
Monday, June 22nd, 2009The commerce department reported a 0.8% unexpected gain in construction spending for April, marking a two month consecutive increase despite predictions that spending would drop 1.2%.
Sageworks Index data also supports a rise in construction activity, but for an additional consecutive month as the data below indicate that sales rose 4.55 % in May after rising 2.94 % in April and 1.66 % in March.
| Date | NAICS - Industry | Sales Pct Change | Quarterly Index Change |
| 5/1/2009 | 23 - Construction | 4.55% | 7.19% |
| 4/1/2009 | 23 - Construction | 3.94% | -10.32% |
| 3/1/2009 | 23 - Construction | 1.66% | -24.15% |
| 2/1/2009 | 23 - Construction | 0.92% | -25.58% |
| 1/1/2009 | 23 - Construction | 3.27% | -7.15% |
| 12/1/2008 | 23 - Construction | 5.18% | -0.54% |
| 11/1/2008 | 23 - Construction | 6.11% | 9.39% |
| 10/1/2008 | 23 - Construction | 6.82% | 8.52% |
| 9/1/2008 | 23 - Construction | 7.84% | -3.13% |
| 8/1/2008 | 23 - Construction | 9.75% | -11.76% |
| 7/1/2008 | 23 - Construction | 10.27% | -2.23% |
| 6/1/2008 | 23 - Construction | 9.12% | 6.48% |
| 5/1/2008 | 23 - Construction | 9.54% | 9.39% |
Housing starts also showed a surprising 17.2 % increase in May after a 12.9% drop in April. While housing starts provide an outlook for future construction activity, the large number of unsold homes on the market will be a limitng reactant for new growth in residential construction.