Wednesday, August 30, 2006

Commercial Construction is Booming

meine meinung ist eher das sich hier der nächste bubble aubaut

Commercial Construction is Booming
By Tony Contributor8/30/2006 9:14 AM EDT

Commercial construction activity is currently very strong. This is evident in the revision to the "structures" component of the gross domestic product, which was revised this morning to show an annualized gain of 22.2% in the second quarter instead of the 12.7% gain that was previously reported. The gain was the largest since 1994 and the second-largest of the past 25 years.

The data underscore the notion that gains in commercial construction activity will help to mitigate weakness in residential construction. The dollar gain in commercial construction was $13.3 billion, which helped to largely offset a $15.8 billion decline in residential construction.

The commercial construction sector has lagged significantly during the current economic expansion, with activity still well below the peak set in 2000. The current rebound in commercial construction activity is hence in its early stages and will probably continue for many more quarters, given the recent uptick in rental demand.



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