Construction Spending Rises, Builders Optimistic
Construction spending rose 2.7 percent in April among residential, government buildings, and industrial segments.Construction of offices and retail declined.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, down-played the figures, saying the government tax credits drove residential increases and nonresidential activity is unreliable. “We expect a downward revision next month,” he said.
But home builders were optimistic. Former CEO of luxury home builder Toll Brothers Robert Toll said, “It appears our business has finally emerged from the tunnel and into a bit of daylight.”
Source: The Associated Press, Martin Crutsinger and Alan Zibel (06/01/2010)