Construction Spending Drops
Updated: May 16, 2018
In yet another sign of a slowing housing market nationwide, the Commerce Department reported Construction spending FELL 1.7% in March after rising 1% in the month before. Year over year spending rose 3.6% which is still healthy. However, the numbers wildly missed expectations according to Bloomberg of a rise of 0.5% and fell by the most in 7 years month to month. Further, the National Association of Realtors reported Pending Home Sales for March rising 0.4% month to month BUT missing consensus Bloomberg expectations of 1.0%. Time to panic? No. But the numbers show a marked deceleration in growth tied to higher rates which may continue to rise. Thus, why we have been preparing clients for such an event by assuring they are diversified into other sectors of construction/housing that are more resilient in an economic slowdown. Further, as business owners to be more risk averse in not only their business but personal lives so that have a buffer of finances to weather a downturn. To gain from our insights please contact us or sign up for email updates via https://www.charlotteconsultantservices.com/news-update.