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Construction has been credited with keeping the economy afloat over the past few months, but the news reports certainly don’t sound rosie for the near term – especially when the increased tarrifs on timber and steel are about to kick in and scare off even more customers. If you plan on getting rich in construction, you better do it in a hurry…
From:
http://www.usatoday.com/money/economy/2001-09-04-construction.htm
Construction spending down again
WASHINGTON (AP) — Construction edged down in July, the fifth monthly decline in a row, as spending for home improvements fell sharply.
The Commerce Department reported Tuesday that spending for all building projects slipped 0.1% in July to a seasonally adjusted annual rate of $859.4 billion.
Building activity in June, which originally was reported as a 0.7% decrease, was revised to an even bigger drop of 1.0%.
The nation’s economy barely grew in the second quarter, expanding at a rate of just 0.2%. But one sector that has held up well during the yearlong economic slowdown is construction and housing activity, thanks to lower mortgage rates.
The Federal Reserve has cut interest rates seven times this year in an effort to avert a recession. The rate reductions lower borrowing costs and are designed to spur demand, which should boost economic activity.
In July, spending on all residential building declined 0.7%. Spending on single-family homes as well as apartments, condos and other multifamily housing rose. But spending on home improvements fell a sharp 3.6%.
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Construction has been credited with keeping the economy afloat over the past few months, but the news reports certainly don't sound rosie for the near term - especially when the increased tarrifs on timber and steel are about to kick in and scare off even more customers. If you plan on getting rich in construction, you better do it in a hurry...
From:
http://www.usatoday.com/money/economy/2001-09-04-construction.htm
Construction spending down again
WASHINGTON (AP) Construction edged down in July, the fifth monthly decline in a row, as spending for home improvements fell sharply.
The Commerce Department reported Tuesday that spending for all building projects slipped 0.1% in July to a seasonally adjusted annual rate of $859.4 billion.
Building activity in June, which originally was reported as a 0.7% decrease, was revised to an even bigger drop of 1.0%.
The nation's economy barely grew in the second quarter, expanding at a rate of just 0.2%. But one sector that has held up well during the yearlong economic slowdown is construction and housing activity, thanks to lower mortgage rates.
The Federal Reserve has cut interest rates seven times this year in an effort to avert a recession. The rate reductions lower borrowing costs and are designed to spur demand, which should boost economic activity.
In July, spending on all residential building declined 0.7%. Spending on single-family homes as well as apartments, condos and other multifamily housing rose. But spending on home improvements fell a sharp 3.6%.
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