Construction Spending On The Rise?
Is it good news is on the horizon for the housing market? Bloomberg is reporting that “Construction spending in the U.S. rose in December at the fastest pace in four months, reflecting broad- based gains that signal the industry is stabilizing.” Figures released by the Commerce Department are also showing a gain, the largest since August.
“There are certainly bright spots for the construction outlook,” Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York, is quoted as saying in Bloomberg News. “Multifamily construction will continue to improve given the ongoing shift from owning to renting and the lack of supply in the market. It will still be a very slow healing process.”
According to the article, private construction spending rose 2.1 % in December. Although it is growing at a slower pace, the housing industry is better off today than it was last spring and it is looking like “home sales and construction will improve in 2012.”
To read the report from Bloomberg in its entirety visit www.bloomberg.com.