This is a post from Jim Haughey's blog that covers the US construction industry.

Jim Haughey is the Chief Economist for Reed Construction Data and has over thirty years experience as a business economist, including twenty years monitoring the construction market. He has a Ph.D. degree in economics from the University of Michigan and has previously taught at the University of Michigan, Ohio University, Michigan State University and the University of Massachusetts.

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Construction Industry Forecasts

Notes from Jim Haughey - Jan 05, 2009

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November construction spending drop surprisingly small
Jim Haughey, RCD Chief Economist

The largest monthly increases were for power ($3.863 billion), highway paving ($3.165 billion) ,manufacturing ($2.495 billion), public safety building, mostly police stations ($1.225 billion), office ($0.861 billion) and education, mostly high schools ($0.647 billion). Each of these markets has already experienced a slowdown in project starts from declining tax receipts and a weakened outlook for space demand so the recent strong gains in construction spending will reverse soon.

The largest monthly decreases were for single family homes ($10.636 billion), residential remodeling ($3.913 billion), communications facilities ($1.573 billion), retail and other commercial buildings ($1.084 billion) and multi family housing ($0.704 billion).  Each of these declines is on track with an underlying weakening trend.  The retail weakness reflects declining retail sales for almost a year which has postponed small store remodeling projects and caused the stoppage of a few malls under construction. The recent drop in spending for communications facilities results from a cutback in network expansion and improvements due to borrowing problems for some carriers and to projects postponed due to a recession slowdown in network traffic growth.

Reed Construction Data’s monthly construction spending forecast will be posted by tomorrow.  The overall outlook is largely unchanged.

 


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Read Other Recent Jim Haughey Posts

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07/29 - Sour economic growth report threatens construction recovery
07/27 - Worry about the deficit not the debt limit
07/27 - Worry about the deficit not the debt limit
07/27 - Worry about the deficit not the debt limit
07/19 - Housing starts rebound.6% in June after two weak months
07/18 - Congress prepares to postpone resolving the deficit crisis assuring an extended period of subpar eco
07/12 - House Transportation Committee proposes to keep federal highway funding at fuel tax receipt level
07/09 - Don’t count on debt limit deal to restart sustained high economic growth
07/08 - Contractors cut 9,000 jobs in June
07/05 - The cost and frustration of selling a home contributes to the delayed housing recovery
07/05 - May construction spending down 0.6%; recovery still on hold
07/01 - FAA stops works on federally funded runway and control tower projects
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06/16 - Mays’ 3.5% gain in housing starts does not signal a housing recovery immediately ahead
06/15 - Cautious spending threatens to delay construction recovery
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