CONSTRUCTION SPENDING

Indicator Release Date Coverage For Actual S&P Consensus Construction Spending 4/1 Feb-11 -1.4% -0.2%

Release Date 5/3 6/1 7/1 8/2 9/1 10/1 11/1 12/1 1/3 2/1 3/1 4/1 Coverage Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Const. Spend 1.01 2.32 -2.78 0.06 -2.61 -0.91 1.21 1.06 0.15 -3.19 -1.76 -1.35 Data displayed as M/M % change

Definition:	Construction Spending reports the amount in dollars spent on new construction of private (residential and non-residential) and public projects. Residential construction includes single-family homes and apartment buildings. Non-residential construction includes commercial projects and community projects that are funded privately. Public construction projects are funded by tax dollars.
Meaning:	Total construction spending represents nearly 20% of GDP. However, this report has two weaknesses: 1) it is considered a lagging indicator, released two months after the fact. 2) The data is extremely volatile, not particularly accurate and is often heavily revised. Economists do use the data when looking at the overall momentum of the economy. Construction spending is one of the first indicators to decline in a recession and one of the first to pick-up in a recovery.
Weight:	*
Source:	U.S. Department of Commerce: Bureau of the Census
Availability:	Report released the 1st business day of the month 2 months following the reference month
Frequency:	Monthly
Coverage:	2 Month Lag Factor (Data for May is released in July)
Volatility:	Moderate
Impact on the Markets:
Interest Rates:	Construction Spending = Uncertain Construction Spending = Uncertain
Fixed-income:	Construction Spending = Uncertain Construction Spending = Uncertain
Equities:	Construction Spending = Uncertain Construction Spending = Uncertain
Dollar:	Construction Spending = Uncertain Construction Spending = Uncertain
More Information:	U.S. Department of Commerce: Bureau of the Census