Thursday, October 1, 2020

Happy Every Economic Statistic in the World Day! 3. Private residential construction spending improves smartly


 - by New Deal democrat

This morning’s third economic release is August construction spending. I track this because it is part of the important long leading housing sector. While it isn’t nearly as leading as housing permits or starts, it is the least volatile of all of the data.

And the news was good, in particular for private residential construction spending, which increased 3.7%:

Residential construction spending is only -0.6% below its February peak.

This is more confirmatory evidence that the economic *wants* to expand, and quite smartly, in 2021, if the pandemic is brought under control.