Stimulus To Impact Construction Starting in May

Norcross, GA, April 9, 2009--Reed Construction Data says that the first signs of the federal stimulus spending will be felt in the construction industry in May, with a gradual pickup the rest of the year.

The firm does not expect monthly gains in construction spending to resume until the end of the year.

Late in the year the cumulative impact of the stimulus spending, significant price cuts throughout the economy and the turn of the manufacturing and distribution inventory cycle from reduction to accumulation should spur monthly gains, Reed said.

It said resumed expansion in construction spending will occur first in consumer driven sectors, such as housing and retail, and last in capital goods driven sectors such as power and manufacturing.