...and every thing's going to be all right. Ok, so I might be a little on the optimistic side and potentially making a mountain out of a molehill, but it's good news on this Friday.
According to Action Economics' March Construction Spending Report the figures contained in the report reverse the pessimistic view for non-residential construction. It has become evident that February (0.6%) and March (1.9%) experienced gains in non-residential construction spending while December (0.2%) and January (0.1%) only saw minimal dips.
The report when on to state: "This dramatic change in direction has substantially trimmed recession risk, as the earlier reported turn in this measure of business fixed investment was seen as a signal of a broader switch in direction for business spending overall. The turn may still unfold, but there is no longer evidence of it in the official figures beyond a temporary blip in growth for this measure for two months ending in January."
Despite the positive notes for non-residential construction, residential construction continues to substantially weaken.
Commercial contractors aren't back to 06-07 levels, but remember those were some of the most successful years ever, and two months worth of modest growth doesn't signal a continued significant increase in construction spending. However, it does seem to point to facts that indicate the industry is thriving despite what picture some may want to paint.
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