U.S. Factory Shipment Numbers See 8.5 Percent Spike
Construction experienced much of the same mixed numbers bag in May. “Total construction spending climbed 0.9 percent in May, seasonally adjusted, as a 2.5 percent uptick in nonresidential spending more than offset a decline of 0.8 percent in residential construction,” said Ken Simonson, chief economist for the Associated General Contractors of America (AGC).
For the first five months of 2007, total construction was down 3.9 percent compared to the same period in 2006. During that span, nonresidential spending jumped 15 percent and residential dropped 18 percent. “Public construction rose 11 percent year-to-date,” noted Simonson. “Private residential spending remains a disaster,” he added.
According to Simonson, single-family construction skidded another 1.4 percent in May and 27 percent year-to-date. Multifamily construction and residential improvements were roughly flat for the month and the first five months combined. “I don’t foresee an improvement in these numbers before the second quarter of 2008,” predicted Simonson.
Publication date: 07/23/2007