Construction touched the entire economy, its hard to have a recession if it is rising…
“Davidson submits:
Construction Spending posted a new high in Dec. Total Construction Spending and three components, Residential, Public and Manufacturing remain either at record levels or posted new highs. That Manufacturing construction spend is 150% higher than Aug 2021 reflects company efforts to solve supply chain issues revealed by the COVID lockdowns. Intel recently opened a chip packaging plant in New Mexico with new sites in Ohio and Arizona in process.
Construction spending slows prior to recessions. There is no sign of slowing in this data. Residential construction dipped with a rise in mortgage rates, but where one can acquire land at a reasonable price it is far cheaper to build than to buy ready built from someone else. In my area in the mid-Hudson Valley building permits have soared from less than 100yr to now over 1,000. Local more rural communities have had to scramble to meet the needs of individual homeowners. This is due to conditions in cities being less favorable towards families.
