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.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
