Construction Spending Disaster: Expectations Missed, Negative Revisions for 2018
Although it's July, economic reports and revisions are still coming in from April and May. Construction spending is the latest standout. Let's start with the Econoday consensus.
Econoday Consensus Reading: A rebound in multi-family units helped drive construction spending 1.8 percent higher in April to fully reverse the prior month's 1.7 percent decline. Construction spending, often volatile month to month, is expected to rise a very constructive 0.6 percent in May in what would be a positive for second-quarter GDP.
Construction spending is one of the most heavily revised reports, and that revision was a doozie.
The Commerce Department report on Construction Spending shows revisions for January, February, March, and April, in fact all the way back to January 2011.
Revision Notice: "With this release, unadjusted data have been revised back to January 2016 and seasonally adjusted data back to January 2011."
As mentioned previously, Econoday stopped commenting on results, but it does post them. I believe the Econoday parrot is dead. If the parrot was still alive, it likely would have found "hidden strength" in today's report somewhere.
Mike "Mish" Shedlock