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Construction spending beat expectations rising 0.9 per cent month-over-month (mum) in December.Analysts polled by Bloomberg were looking for construction spending to rise 0.7 per cent mum.
November’s number was revised up to 0.1 per cent.
Investors watch this number because of its direct bearing on homebuilder stocks and commodities.
Moreover, Bloomberg points out that private residential, nonresidential and government construction spending have an impact on three key aspects of GDP namely “residential investment, nonresidential structures investment, and the structures portion of government expenditures”.