Economic Indicator: Construction Spending

What is construction spending?

Construction spending is a monthly estimate used by economists and market analysts to measure the total amount of new money spent on U.S. construction products and services in any particular region during any particular month.  Residential and non-residential construction investing may indicate sentiment in real estate markets across regions as well as the health of business growth, investment or stagnation. It may include new construction or improvements to existing buildings or property. U.S. Private and public construction spending is measured by the U.S. Census Bureau. Global construction growth and measurement is done by country. Regional statistics, forecasts and estimates can be found here at The Statistics Portal. Examples of of non-residential construction includes hospitals, roads, shopping centers, and corporate buildings. Residential construction includes homes, multi-family, and mobile home structures and parks. Investment in real assets effects employment as well. Construction spending can be a leading or lagging indicator of the health of a particular market or economy. While measurement often relies on surveys at a local and national level, monthly data and outlooks provide significant insights.