The construction market experienced a sizable jump in January, the largest in nearly eight months according to a new report.
Earlier this week, the Commerce Department revealed that construction spending in the United States had increased 1.5% in January to reach $1.14 trillion. To put that number into perspective, that’s the highest level for construction spending in the U.S. since October 2007 — for both private and public companies nonetheless. Of course, the construction industry has been trending in a positive direction for several months now. In December, the Commerce Department reported that construction spending had increased 0.6%. Granted, that pales in comparison to January’s 1.5%, but it was still a positive gain.
There’s been some concern about a possible recession in the U.S. But when looking at reports such as this, it reveals a different picture for the U.S. economy. With construction spending on the rise, companies are earning more revenue, and subsequently workers are getting paid more. This increased spending also has a positive impact on the job market, with tens of thousands of new construction jobs being created every month in the U.S.
“The very good construction report for January is further proof that concerns about recession in the U.S. are far overblown,” said Gus Faucher, deputy chief economist at PNC Financial in Pittsburgh, cited by the New York Times.
So, how did the U.S. manufacturing industry fare during this period? According to a separate market report, the manufacturing industry “stabilized” in February. Production increased during February, with orders holding steady. The manufacturing industry continues to rebound from 2015, during which it was dealt a serious blow. However, things have been turning around, as reports such as this indicate that manufacturers are experiencing positive growth.
What’s in store for the future of the U.S. manufacturing industry? There’s really no way to tell just where the market is headed, although analysts predict manufacturing will continue to experience positive gains throughout the year as it rebounds from 2015. You can catch all of the latest news and updates surrounding the U.S. manufacturing industry by following our blog here at Ask Monroe.