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Construction spending rose 0.3% in June. This is nothing to write home about. In a word, construction spending is practically flat.
The true state of affairs is that construction spending, at $965.7 billion, is down 10.2% from last year. Now that nothing to sneeze at but it is way off from our peak spending.
The good news is that new and existing home sales rose in June by the largest amount in eight years. But again, keep in mind that we are coming off very low numbers.
In another report, the manufacturing sector is still in the doldrums. The Institute for Supply Management index stood at 48.9 in July, rising a bit from 44.8 in June. Both numbers are still below 50.0. A reading of below 50.0 shows that the economy is still contracting.
July was the 18th consecutive month of decline in manufacturing. Yet present readings are much better than the December low reading of 32.9.
Our inventory buildup is still being worked off. Last month we unloaded $141 billion of inventory. Until this trend ends, manufacturing will remain weak.
Do you believe that our economy is getting better?
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