CNBCToday’s March construction spending report was a big disappointment, unexpectedly falling 1.7% from February to $856 billion.
Economists were looking for a 0.6% gain.
However, not all economists see it as a total disaster.
“The construction spending data are not that bad,” said Deutsche Bank’s Joe LaVorgna in a tweet. “They point to $4 billion more Q1 output than BEA first assumed.”
Last week, we learned that real GDP grew at a 2.5% rate in Q1, which was much lower than the 3.0% growth rate forecasted by economists.
But that GDP report was just the first of three estimates. Perhaps we’ll see some upward revisions coming.