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Construction Spending

Сonstruction spending indicator represents the ratio to its value for the previous period, or an absolute value of construction spending for the chosen period of time. This value is closely related to the change of major interest rates, because a large part of construction is financed at the expense of bank credits. Due to the peculiarities of real estate sphere, value of the indicator is subject to serious season fluctuations. Construction spending is directly connected with wealth of population. Therefore, growth in housing construction tells about economic upsurge and growth of income of population.

Сonstruction spending indicator does not impact on the market a lot. But as a rule, its growth is accompanied with consolidation of national currency and testifies about positive economic dynamic. More often, it is published on the first business day of the month at 10:00 a.m EST (New York).

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