Construction spending is an indicator that measures monthly expenditures toward new construction. The indicator is very sensitive to changes in the key interest rate since it is required to take bank loans for construction. The indicator is subject to seasonal fluctuations due to the peculiarities of the real estate market. The construction process is directly related to the income of a population. Therefore, an increase in construction volumes reflects an improvement in the well-being of a population and a healthy economic development of a nation. Construction spending figures tend to have only a minimal effect on markets. When the value of the index rises, it has a positive effect on a national currency. The reading is published on the first day of each month at 10:00 am EST.
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