GDP Numbers are Good, but Construction Figures are Better

Click here to read the full articleThe United States' GDP grew last quarter: it grew by an estimated 4%. Part of the increase was due to construction figures. Fixed nonresidential investment was up more than the overall economy at 5.5%, and residential investment grew by more than 7%, according to Associated Builders and Contractors. 

Fortunately, last quarter's increase in GDP helped turn around a poor, negative first quarter. Although still negative, the first quarter was not as bad as orginally reported. The Commerce Department revised their estimates and discovered that the shrinkage was only 2.1%, not the orginally reported, 2.9%.

Although Federal spending fell this past quarter, state and local spending rose. Nonresidential growth is also supported by a recent report which shows both heavy and civil engineering firms are beginning to hire again.

Although these increases are not where we might really desire them to be, positive increases is good news, nonetheless.

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