Ch#4 Construction Expenditures

Question 1

Construction Expenditures is also known as

Answer 1

The value of New Construction put in place

Question 2

Where is the data derived from

Answer 2

Progress reports filed by owners of a sample of construction projects throughout the 50 states and District of Columbia, the data valued in nominal and real dollars

Question 3

Construction Expenditure

Answer 3

Market Significance+ Low
Typical Release Time+ 10:00 AM Eastern Time, First business Day of the Month
Released By+ Commerce Department Census Bureau
Period Covered+ Two months prior

Question 4

How does this affect the business cycle

Answer 4

Decline on average during recessions, grow strongest during the recovery, and grow more moderately during the expansion. The key is the different timing of the residential and nonresidential construction sectors.

Question 5

How is Retail Construction factored in

Answer 5

Tends to be a leading indicator of the business cycle, similar to housing starts. Nonresidential, however, tends to drop most noticeably only after the recession has begun, and it tends to increase after the recovery has started. These two patterns create a seemingly “average” series.