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.

RELATED TERMS
  1. Building Activity Indicators

    Economic reports that tell investors about the current and projected ...
  2. Bureau of Census

    A division of the federal government of the United States Bureau ...
  3. Construction Mortgage

    A loan borrowed to finance the construction of a home and typically ...
  4. Construction Interest Expense

    Any interest that is paid during the construction phase of a ...
  5. New Home Sales

    An economic indicator that measures sales of newly built homes. ...
  6. Housing Starts

    The number of new residential construction projects that have ...
Related Articles
  1. Insights

    Australian Construction Sector Slows in Q1

    The total value of construction work completed in Australia slumped by 2.6% to A$47.928 billion in Q1 2016 following a 3.6% contraction in Q4 2015
  2. Investing

    UK Construction Slows, the Pound Tumbles

    United Kingdom's construction PMI stood at 52.0 in April, declining from 54.2 in March. The readings are well below economists’ expectations of 54.0.
  3. Managing Wealth

    Top US Housing Market Indicators

    A quick overview of the top economic indicators to track the housing market in the US.
  4. Personal Finance

    Getting A Mortgage When Building Your Own Home

    It's much harder to get a loan when you're building a home, not moving into one. Here's where to look and what to expect.
  5. Personal Finance

    8 Signs Your Neighborhood Is On The Upswing

    If you were hard-hit by the real estate crash, you may be wondering when things will get better for you. We show you how to keep tabs.
  6. Investing

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  7. Insights

    Introduction To Coincident And Lagging Economic Indicators

    Investors can learn a lot, or very little, from these indicators once they know how to use them.
  8. Personal Finance

    2 Reasons Why the Stock Market Leads the Economy

    Pay attention to how economic strength can follow a sustained stock market advance and how economic weakness can result from a stock market slump.
  9. Investing

    What's a Multiplier?

    A multiplier attempts to measure the effect of aggregate spending over time.
  10. Investing

    What is the Private Sector?

    The private sector encompasses all for-profit businesses that are not owned or operated by the government.
RELATED FAQS
  1. What's the difference between housing starts and building permits?

    Both housing starts and building permits are economic indicators used to assess the health of the housing market, but their ... Read Answer >>
  2. How does the United States government measure economic growth?

    Find out how the Bureau of Labor Statistics and the Bureau of Economic Analysis measure economic growth in the United States ... Read Answer >>
  3. What does the Bureau of Labor Statistics do?

    By collecting, analyzing and reporting on important economic data, the Bureau of Labor Statistics has become a critical information ... Read Answer >>
  4. Does the FHA provide construction loans?

    Learn how you can save with FHA-insured construction and rehabilitation mortgages that allow you to finance construction ... Read Answer >>
  5. What data does the Bureau of Labor Statistics collect?

    Collected data includes unemployment numbers, inflation, prices, pay and benefits, time use of Americans, import/export numbers ... Read Answer >>
  6. How much of an economy's performance is captured by real GPD?

    Learn about the economic information captured by real GDP. Find out how real and nominal GDP are constructed and the purposes ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center