Construction Spending & ISM

Summary: The housing debacle continues to ripple through the economy as construction spending declines to a 14 year low.

Consumers spend less and factory production goes into contraction.

If you think its ugly now, just wait for the service sector and employment to collapse.

Construction Spending Jan -1.7% vs prior -1.1% Full Report

Inside the number: The lowest level since 1994. YOY -19.4%; Private Construction -2.2%; YOY -6.4%; Private Residential Construction -3%; YOY -19.7%;

Public Non Residential Commercial Construction YOY -13.5%; Private Residential Multi Unit -1.7%; YOY -18.6%; Single Family Home -5.2%; YOY -32.1%

ISM Index Feb 48.3 vs prior 50.7 Full Report

Inside the number: Readings below 50 indicate contraction, the fastest pace of decline since 2003.

New orders contracting 49.1 vs 49.5, production slowing 50.7 vs 55.2.

Supplier deliveries slowing 50.1 vs 52.8; employment contracting 46 vs 47.1; prices growing 75.5 vs 76

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