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Of all the noisy reports, construction spending is the worst. Econoday economists expected spending to rise 0.3%, instead it fell 1.1%.

However, the commerce department revised May from +0.4% to plus 1.3%.

Here it is August, and we have wild revisions for May. Second-quarter GDP has already been reported. Because of timing issues (the report is very late) and continual massive revisions, I may throw this data series away as totally useless.

The whole chart smacks of nothing but noise.


The report itself is noise, but I do think a housing slowdown is underway.

  1. Housing Prices Hit "Breaking Point" Leading to Collapse in Demand
  2. Apartment Construction in 2018 Expected to Decline 11% After Strong 6-Year Run
  3. Existing Home Sales Decline Third Month Despite Rising Inventory
  4. Real Hourly Earnings Decline YoY for Production Workers, Flat for All Employees
  5. Housing Starts Unexpectedly Plunge 12.3% in June, Permits Down 2.2%

Mike "Mish" Shedlock