Construction Spending at All-Time High October 3, 2005
Posted by Tim Raines in: business, construction, manufacturing, real estate , add a commentIf the economy is in trouble of any kind, no one’s bothered to tell the construction industry. Construction spending climbed to an all-time high in August, rising by 0.4 percent to $1.11 trillion at a seasonally adjusted annual rate.
The best news of all, though, is these numbers are expected to climb even higher in the coming months as a result of Hurricane Katrina and Hurricane Rita, which didn’t happen until after August and, therefore, are not included in August’s spending.
Many analysts had predicted a slowing down of home building due to continued rising mortgage rates. According to Freddie Mac, the rate for 30-year mortgages hit a five- month high of 5.91 percent last week. The sector is expected to set records in 2005 for the fifth straight year.
The construction industry is often used as a harbinger of what is to come in the economy as a whole.
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