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Construction Spending
Construction spending represents a significant portion of the gross domestic product (GDP).  This report provides clues about the overall economy since the construction industry is usually the first to go into recession when the economy declines but it is also the first to recover as conditions improve. 

The data reviews three components:

  • Private residential construction (single and multi-family)
  • Private non-residential construction (factories, hotels, hospitals, private schools, churches, etc.)
  • Public construction (highways, military reservations, public schools, housing projects, and water and sewer systems.)

Two deficiencies inherent in the construction spending data:

  • the information is late in coming and is not particularly accurate
  • the report is one of the last pieces of information available on the state of the economy and it is published two months out from the reported month 

Economists generally use the three- to six-month moving average as a better gauge of trends but this measure is of little consequence to the bond market.

 Link To Government Data!