What Prompted the Spectacular Growth in Office Construction?
The government’s most recent report on construction spending in the U.S. fell short of expectations, with spending actually falling 0.1 percent in June instead of rising the forecasted 0.3 percent. The prior month’s data was revised down from 0.1 percent monthly growth to flat. Compared with a year ago, construction spending is down 3.2 percent.
One big exception comes from an unlikely category of growth: office construction. The private sector’s outlays on office construction rose 2.8 percent in June. Year-to-date it is up 7.3 percent. Compared with June of last year, it is up 15.1 percent.
That seems crazy. In our...
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