Home Construction Spending Hammered Down

April 2, 2012 by Douglas A. McIntyre

Construction spending dropped 1.1% in February, according to the Commerce Department. The numbers were a disappointment to most analysts

In all probability, builders continue to watch a drop in home prices which was most recently seen in the S&P/Case-Shiller Index. Foreclosures are also running at a brisk pace according to new data from Corelogic and RealtyTrac.

Record low interest rates have not drawn buyers into the market, because, they too believe the home prices have further to fall. No one wants to have negative equity in a home just a year after a purchase.

The number is also an indication that unemployment in the construction industry, among the highest of any sector, is not likely to improve, which will put a drag on the jobs recovery.

Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.