US Construction Spending Drops 1.9% in September
United States construction spending fell 1.9% in September to an annualized $2.186 trillion, sharply missing economist expectations of a 0.3% increase.
Construction spending in the United States fell 1.9% in September, dropping to an annualized $2.186 trillion. The decline sharply missed economist expectations, which had predicted a 0.3% increase for the period.
Because the construction sector serves as a leading indicator of economic momentum, the gap between the expected gain and the actual plunge is expected to impact valuations for homebuilders and building materials companies.
Additionally, the weaker-than-anticipated spending report may influence the Federal Reserve System's future interest rate decisions by reducing a source of inflationary pressure.
