Construction is one of the areas of the economy that shows exactly where certain markets are in terms of financial strength or confidence. Spending on construction, specifically public construction, was up for the month of March, according to reports, which has many people optimistic about the economy’s growth.
However, construction on new private homes was said to have fallen as many believe that those who were purchasing homes bought homes that were already built due to lower home prices, lower mortgage rates, and the first-time home buyer tax credit.
Many people want to see more from the construction industry as both public and private construction would indicate that people are either willing to spend more money, businesses are willing to expand, or people can simply afford to build a new home rather than buy one that is already built.
Construction has seen its ups and downs in the past few months, but many people believe that as the economy gets stronger construction is going to rise as there are many people and business owners who want new homes and new businesses built.
If unemployment is receding then the chances of construction numbers increasing and more homes and buildings being built is going to rise as well. Many people who are employed or businesses that are making money still worry about the economy, yet many believe that increase in construction numbers shows at least some individuals have confidence in the economy.