Economic Rebound Strong

July 24, 2006
/ Print / Reprints /
/ Text Size+
ARLINGTON HEIGHTS, Ill. - The Air Movement and Control Association International Inc. (AMCA) recently released a Quarterly Forecast Newsletter for the second quarter of 2006. Written by consulting economist, Hans Zigmund, the report cites a strong economic rebound in the first quarter of 2006 and preliminary figures from the year indicate a strong push forward for the U.S. economy in the second quarter.

Propelled by national defense spending, Hurricane Katrina relief, and durable goods consumption, real gross domestic product (GDP) grew at an annualized rate of 4.8 percent in the first quarter 2006 compared with just 0.9 percent annualized growth in the fourth quarter of 2005, according to Zigmund.

"The stabilization of interest rates should help business investment in construction as firms continue to expand capacity. The expansionary fiscal effects of government spending are unmistakable in this growth phase," said Zigmund. "As the Katrina rebuilding wraps up and soldiers are redeployed to the Middle East, spending should come back into line. This will have a short run contractionary impact on the economy, but in the long run should serve to slow the growth rate of federal deficits."

Based on industry statistics, Zigmund explained that nonresidential investment in construction was strong as expected in the first quarter and strong construction figures are expected to drive growth in the second quarter. Growth in nonresidential construction is expected to continue at an annualized rate of close to 9 percent during the second quarter as well.

Publication date: 07/24/2006

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

Mini Split Installation

Twin Cities contractor Aabott Ferraro helped retrofit an older St. Paul home.


NEWSMakers: Doug Dougherty

Doug Dougherty, president and CEO of the Geothermal Exchange Organization (GEO) joins the program to discuss the latest happenings with GEO, including the drive to get included in state and federal definitions of renewable energy, plus the future of geothermal.  Posted on July 25.

More Podcasts


NEWS 07-28-14 cover

2014 July 28

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe


Some in the industry are calling for the EPA to halt production of R-22 as of 2015. What do you think?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con