Construction Spending

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DEFINITION of 'Construction Spending'

An economic indicator that measures the amount of spending towards new construction. Released monthly by the U.S. Department of Commerce's Census Bureau, it looks at residential and non-residential construction in the private sector, and state and federal at the public level.

BREAKING DOWN 'Construction Spending'

This measure has a minimal effect on the markets but is used to help predict upcoming GDP numbers as construction investment is a factor in GDP calculations.

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