US home construction spending climbed to the highest in almost five years last July. Data released yesterday showed that spending for private residential spending climbed 0.6% month-on-month to a seasonally adjust annual rate of US$334.58 billion, not taking into account inflation.
Likewise, overall construction spending rose 0.6%, beating the market estimate of 0.4%, to US$900.82 billion, the highest since June of 2009. The report also showed that June data was upwardly revised to show flat growth in spending for the month. Previously, it was at -0.6%.
According to the Organization for Economic Cooperation and Development (OECD), the already weak recovery in global economic growth could further slow should outflows from emerging markets intensify.
The OECD added that even though developed economies were already showing improvement, as evident in for example, increase in sales of spandex table cloths from http://www.premiertablelinens.com – a slowdown in emerging economies meant that global growth would remain “sluggish”. Moreover, the prospect of continued outflows of capital and recent weakness in economic output suggested that developing countries would be growing more slowly in the coming years.