Since the low point in Q1 2011, total construction spending has increased 26% to $959 million in Q2 2014, helped by strengthening consumer confidence.
A common barometer to gauge the current state of the economy - construction spending - is linked to a number of key economic indicators such as unemployment, interest rates and the purchase of durable goods. Since the housing bubble burst in 2007, followed by the credit crisis and subsequent Great Recession of 2007-2009, the U.S. economy's recovery has been tepid. One must look no further than homeownership statistics and construction spending figures to reinforce the reality of a slow U.S. economic recovery and a weakened middle class. The good news is total construction spending is expected to grow 7 percent for 2014 and 8 percent in 2015.
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