Construction Industry on the Rise Might Spell Reverse of Recession

Whispers. There are ever loudening and increasing whispers about the U.S. pulling out of this deafening recession. Construction spending rose unexpectedly in June according to recently released data. This may not be as unexpected as many think, as the construction industry seems to be pushing the envelope of recovery and gaining ground back against this history recession. Careers in fields such as construction management are ripe for the taking, and may nurture this rotting economy to full bloom.

According to Reuters, “the Institute for Supply Management said its index of national factory activity rose to 48.9 in July from 44.8 in June, bringing the index much closer to the 50 reading that separates contraction from expansion. The ISM index has not been above 50 since January 2008.”

In June U.S. construction spending rose 0.3 percent, with spending for public buildings reaching a record rise of 1.0 percent ($321.75 billion). This figure is the highest on record and bodes well for the construction industry. This extremely positive sign let’s people in or interested in the field breathe easier after the construction spending dropped .8 percent in May, according to the Commerce Department. With this increase, many analysts feel that the nation’s economic direction will be turned around off its head.

“It’s another data point showing that the economy is starting to bottom out here, and perhaps the worst is behind us,” said David Dietze, chief investment strategist at Point View Financial Services. June was the fifth month in a row that public construction, making up 1/3 of America’s total construction spending, had gains. Although private construction has not had the same success, private residential building, which makes up 1/4 of construction spending rose 0.5 percent ($246.07 billion) in June. This is yet another extremely positive sign for our hopeful climb out of this recession since private residential building has been notoriously battered by the economic downturn.

“For construction spending, all the signs are there that we’ve pulled back and that we are on the verge of growing again,” said Jim Awad, managing director at Zephyr Management in New York. Construction is on the rise, and may be the next hot industry to make great, and perhaps more importantly, stable money. Welding, engineering, architecture, construction management, electrical, and plumbing may be just what you need for a new start (as the country begins its own). Check out the programs available to you today.

Filed in: Career Options.

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