Construction Looked Up

Nonresidential construction looked up last month.  The GDP accounts showed that fourth quarter business spending on structures was a soft positive, but the month-to-month numbers show a December rebound. (These monthly figures usually are not included in the first GDP estimate, but I have not had time to verify that for the current report.)

Nonres_2

Top growth area last month was manufacturing facilities.  Religiouss buildings also had strong growth.  Either we’re seeing a renewal of spirituality, or developers have found a way to get financing for spec churches.

Business Strategy Implications:  The October dip in nonresidential construction was an aberration; the sector is strong, and should show good strength through 2007.