Construction Spending falls in February

From Reuters.com ……… April 1, 2011

Construction Spending at Lowest Level Since '99

U.S. construction spending fell more than expected in February to its lowest level since October 1999, a government report showed on Friday, pulled down by weakness in both public and private construction.

The U.S. Department of Commerce said construction spending fell 1.4 percent to an annual rate of $760.6 billion, underscoring renewed weakness in the housing sector. January's spending was revised to show a larger 1.8 percent drop than the previously reported 0.7 percent decline.

Economists polled by Reuters had forecast construction spending falling 0.1 percent in February.

Joel’s comments:

As Wendy’s would put it, “where’s the beef?”

As Joel would put it, “where’s the rebound?”

This is the kind of news that does not bode well for the “collective, sum-total” of Q1 2011 revenues generated by reprographers from the A/E/C market segment. If construction spending is down, then how can “Sales” be up? It will be very, very interesting to see if ARC’s Q1 2011 revenues exceed the Q1 2010 revenues that ARC reported for Q1 2010. Unfortunately, we will have to wait until May to see what ARC did in Q1 2011.

It would certainly be “very cool” if ReproMAX and RSA would publish their collective “group” revenues, quarter by quarter, so that the entire reprographics industry could see what’s really happening. Alas, I don’t see that happening. Maybe RW Baird’s next IRgA Survey (for Q1 2011) will shed some light on what’s going on, revenue-trend-wise.