Home > News > Industry News > Construction spending damaged, saved economy last year

Construction spending damaged, saved economy last year

Post Time:Nov 12,2013Classify:Industry NewsView:100

According to a recent New York Times article, construction spending is both the cause of America’s recession threat and the only thing that kept the economy out of recession in late 2007. The distinction is between residential and nonresidential construction. While falling residential construction contributed significantly to the economic slow-down, the decrease was offset by rapid gains in non-residential construction markets and local government spending. Those markets rose at an annual rate of nearly 16 percent and 10 percent in the fourth quarter, respectively, together adding a full percentage point to the overall growth rate and keeping the economy from decline. Unfortunately, while residential spending is unlikely to continue falling at the same rate, commercial construction is expected to feel the negative impacts of the credit crunch, with employment rates declining and developers facing difficulty in securing financing. Government wallets also are expected to tighten this year as falling real estate values may reduce tax revenues, which could in turn reduce the number of construction contracts put up for bid … read moreShare this article:

Source: http://www.glassmagazine.com/news-item/commercial/construction-spending-damaged-saved-economy-last-yearAuthor:

Hot News