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Title: Construction Spending in U.S. Unexpectedly Increased in August
Source:
Bloomberg News
URL Source: http://www.bloomberg.com
Published: Oct 3, 2011
Author: Shobhana Chandra
Post Date: 2011-10-03 10:02:56 by war
Keywords: None
Views: 3028
Comments: 7
Oct. 3 (Bloomberg) -- Construction spending in the U.S. unexpectedly rebounded in August, propelled by the biggest jump in state and local government outlays in more than two years. The 1.4 percent gain reversed the revised 1.4 percent drop in July, Commerce Department figures showed today in Washington. The median estimate of 52 economists surveyed by Bloomberg News called for a 0.2 percent decline. The industry was up 1.4 percent from August 2010 before adjusting for seasonal variations, the first positive reading this year. Increased building of multifamily residences, like apartments and townhouses, adds to evidence that Americans are moving away from home buying in favor of renting. Even with the gain in state and local spending in August, public construction was down 5.3 percent from a year earlier, showing the pain caused by budget cuts. “Home sales and housing construction continue to struggle,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. Public projects face “increasingly difficult budget conditions,” he said. Estimates in the Bloomberg survey ranged from an increase of 1.2 percent to a drop of 1.1 percent. The prior month’s reading was previously reported as a 1.3 percent decline. Private construction spending rose 0.4 percent. Homebuilding outlays increased 0.7 percent, while private non-residential projects climbed 0.2 percent. Spending by public entities jumped 3.1 percent from the prior month, the most since February 2009. Federal construction spending fell 0.5 percent, a third consecutive drop, while state and local agencies spent 3.5 percent more. Government Spending The gain in total government spending reflected increases in the building of schools, streets and highways and waste disposal plants. Work began on 571,000 homes at an annual pace in August, the weakest in three months, figures from the Commerce Department showed on Sept. 20. “There’s not much that points to an improving housing market at any point in the near future,” Ara Hovnanian, chairman and chief executive officer of Hovnanian Enterprises Inc., said on a Sept. 8 conference call with analysts. “Our internal business plan assumes market conditions do not improve.” Purchases of new houses declined in August to a six-month low as the biggest drop in prices in two years failed to lure buyers away from even less expensive distressed properties, Commerce Department figures showed on Sept. 26. The median price fell 7.7 percent from August 2010, the steepest 12-month drop since July 2009. Fed Outlook “There are significant downside risks to the economic outlook,” Federal Reserve policy makers said in a statement on Sept. 21 after its two-day meeting. “The housing sector remains depressed,” and there is “continuing weakness in overall labor market conditions.” The Fed, aiming to lower borrowing costs and spur housing and refinancing, last month announced additional steps that include a decision to reinvest maturing mortgage debt into mortgage-backed securities instead of Treasuries. Government agencies are under pressure to cut spending. The Census Bureau reported last month that property-tax collections - - the main source of income for cities and counties -- dropped 1.2 percent in the second quarter, the third consecutive decline.
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#1. To: Happy Quanzaa (#0)
[snicker]
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Bill Gross at Pimco has had a change of heart. Bloomberg reports Bond Bears Piling Into Treasuries as Yield Forecasts Cut by Most Since ’09 We're following Japan into ZIRP hell. Until the Bottom 90% get jobs w/ income, CRE's and private homes keep imploding.
He had the line of the day: "Sovereign balance sheets resemble an overweight diabetic on the verge of a heart attack.”
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
;} Notice no one is excited about how strong our $ looks. How low crude is falling?
If it breaks through $75 [50% from low to high] it's going to $65...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
I've said $30 since 2008. Just waiting for DC/Wall St to say they can't produce any more positive debt...expand their balance sheet w/o jeopardizing any and all gains since WWII...;} Always interesting to note, deposits to a bank are a liability and loans to a bank are an asset, a truly mixed up situation and one that certainly explains a large portion of the trouble we find ourselves in today.
Wall St can't hold because Europe is not holding. 1/2 hour before the close minimum. Dow Will move to Europe's Close which is now down almost 3%. Watching MS/Dexia now.....;}
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#2. To: war (#1)
#3. To: mcgowanjm (#2)
(Edited)
Bill Gross at Pimco has had a change of heart. Bloomberg reports Bond Bears Piling Into Treasuries as Yield Forecasts Cut by Most Since ’09
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#4. To: war (#3)
"Sovereign balance sheets resemble an overweight diabetic on the verge of a heart attack.”
#5. To: mcgowanjm (#4)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#6. To: war (#5)
If it breaks through $75 [50% from low to high] it's going to $65...
#7. To: All (#6)
(Edited)
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