What is Construction Spending?

Construction Spending Definition. Construction Spending on a monthly basis is summarized in a report released by the U.S. Department of Commerce’s Census Bureau. The report details residential, nonresidential, and public expenditures on new construction. Figures are expressed in both nominal and inflation-adjusted (real) dollars. Economists use the real dollar figures to forecast upcoming quarterly GDP numbers since construction spending is a major component of investment spending included in GDP computations. Its usefulness as a leading indicator that can influence market behavior is questionable because monthly figures tend to fluctuate a great deal, necessitating major revisions from time to time. However, trends that extend over three months or more are sometimes deemed significant.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.