Nonresidential construction helping to power the economy

With all of the obsessing over the slowing of the housing sector, hardly anybody has noticed that nonresidential construction is booming. According to the latest construction spending report, nonresidential construction spending is now greater than residential construction spending.

Since December, overall construction spending declined -0.8%, with residential construction spending declining -1.7% and nonresidential construction spending rising +0.2%.

Over the past year, overall construction spending declined -1.2%, with residential construction spending declining -12.7% and nonresidential construction spending rising +13.5%.

There isn't less money floating around in the U.S economy, so reduction in spending in one area encourages higher spending in others. In America, money doesn't like to sit idle. Capital seeks a productive use.

Expect to see nonresidential construction spending, including commercial and office construction, to be a key pillar of the growing economy over the coming year.

-- Jack Krupansky