All components posted gains for the sixth straight month. Despite higher interest rates, construction is going strong and showing no signs of slowing in the near future.
Economists look to construction spending for clues about the overall economy.
The construction industry is one of the first to go into a recession when the economy declines and, likewise, the first to recover as conditions improve. The residential category includes single family homes and apartments. Nonresidential construction includes factories, offices, hotels, motels, churches, hospitals, and private schools. Finally, the public sector covers highways, streets, military reservations, water supply facilities, public school buildings, housing projects, and sewer systems. It is published two months out from the reported month, making it one of the last pieces of information reported on the state of the economy.