Construction Spending

http://capitalmarkets.ca-indosuez.com http://www.carrfut.com Data Update Evelina M. Tainer - Chief Economist, Econoday...

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Data Update Evelina M. Tainer - Chief Economist, Econoday

E-mail: [email protected]

Construction Spending Definition The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Released On 5/1/01 For Mar Construction Spending 0.4% Consensus Actual 1.3% Notes Construction spending increased 1.3 percent in March after an upward revised gain of 0.9 percent in February. The March rise was significantly higher than expected and this put the total 3 percent above year ago levels. The primary mover in this sector is nonresidential construction, which jumped 3.4 percent for the month after remaining unchanged in February. Spending on nonresidential buildings tends to fluctuate sharply from month to month, but the 9.8 percent gain from a year ago is still strong. Residential investment spending grew more modestly: posting a 0.3 percent gain in March after rising 2.5 percent in the previous month. However, this sector is trending much lower and is down 0.6 percent from year ago levels. It reflects the downward trend in housing starts. In any case, overall construction spending was relatively healthy in March, which may be viewed in a less than friendly light by bond investors hoping for a weak economy so that the Fed would ease more aggressively. This is more friendly news for equity investors as they are primarily concerned with profitability. This would help industries related to nonresidential construction more than those in the residential sector. Data displayed as month/month % change Released On: 6/00 7/00 8/00 9/00 10/00 11/00 12/00 1/01 Released For: 4/00 5/00 6/00 7/00 8/00 9/00 10/00 11/00 1.5 -1.2 0.6 Construction Spending -1.6 -0.5 -1.6 -0.7 1.1 -0.9 -0.4 -1.1 -2.4 -1.2 0.3 -1.0 0.3 ....Residential -1.6 0.4 -0.9 1.1 1.6 1.4 -0.3 1.1 ....Nonresidential Revised upward. Revised downward. New data released.

2/01 12/00 0.3 0.5 -2.2

3/01 1/01 3.0 2.6 5.4

4/01 2/01 0.9 2.5 -0.1

5/01 3/01 1.3 0.3 3.4

The information contained herein is based upon sources that we believe to be reliable, but we do not represent that it is complete or accurate. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by or on behalf of Carr Futures, its officers, directors or employees. Carr Futures is regulated by the SFA for the conduct of investment business in the UK. Member, SIPC. © 2000, Carr Futures.

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Monthly changes can sometimes obscure underlying trends. As a result, it is often useful to look at year-over-year changes in economic data series. It is helpful to look separately at trends in residential and nonresidential construction since they don't always move in tandem over the economic business cycle. 2001 Release Schedule Released On: 1/3 2/1 3/1 4/2 5/1 6/1 7/2 8/1 9/4 10/1 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug

11/1 Sep

12/3 Oct

The information contained herein is based upon sources that we believe to be reliable, but we do not represent that it is complete or accurate. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by or on behalf of Carr Futures, its officers, directors or employees. Carr Futures is regulated by the SFA for the conduct of investment business in the UK. Member, SIPC. © 2000, Carr Futures.