From the course: Economic Indicators

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Construction spending

Construction spending

From the course: Economic Indicators

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Construction spending

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- Have you ever heard the '80s song We Built this City on Rock 'n Roll? Well, if construction spending were tied to rock 'n roll, it might not be as important an economic indicator. But as it turns out, construction spending is very important for U.S. economic growth, plus construction spending is important for building materials, and it can impact the demand and prices of copper, for wire and plumbing, plastic pipe for plumbing, steel for bigger structures, and lumber for single family homes, condos and townhouses. Because construction spending is critical for overall economic growth and a number of commodity markets, it's an important data point for specific companies, some industries and also big economic policy stuff. Economists, investors and traders are very interested in construction sales, and the number they are hungry for when it comes to construction, is the month-on-month percent change in the value of construction put in place. This includes all kinds of things that are…

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