Blog

Temporary blip in construction
Posted by on

An Associated Press story notes that nonresidential construction unexpectedly declined less than residential construction in November.

Good news, but temporary. Unless future months continue to defy expectations, steep declines in construction spending will continue throughout 2009. Sources in the article cite significant slides in consumer spending, leading to lower demand for new retail space and lower employment, leading to declines in the need for office space as signs of a dismal near-future.

The only good news in the article--which seems often repeated as one of the very few sources of hope for the economy--is President-elect Barack Obama's plan to make massive federal investments in infrastructure projects, including roads, bridges and public buildings.

browse POSTS BY CATeGORY: