Stimulus spending still too little, too late

Come on Obama, open that spigot.

"U.S. Construction Industry Has ‘Run Out of Steam,’ Associated General Contractors Says
(Daily Commercial News)

Stimulus impacts limited by ‘needless delays and red tape’

Spending on non-residential construction in the U.S. tumbled 1.5% in October (seasonally adjusted), the lowest annual rate since July 2007, according to new Census Bureau data. Non-residential construction spending slumped to $652 billion, an 11% decline compared to October 2008.

“Even formerly robust construction segments, such as manufacturing and power, have run out of steam,” said Ken Simonson, chief economist of the Associated General Contractors of America. Spending on both categories of construction dropped more than 2% from September, Simonson noted. “Worse, the impacts of the stimulus have been more limited and temporary because of needless delays and red tape,” he said.

Private non-residential construction shrank 2.5% in October and dipped 21% compared to October 2008. Public non-residential spending slipped 0.4% in October, but was up 3.7% year over year.

Developer-financed categories, including private lodging, office and commercial – retail, warehouse and farm – fell between 2% and 6% for the month and 37% to 45% over the past 12 months.

While the largest public category, highway and street construction, was up 4.7% compared to October 2008, it slipped 0.3% between September and October. “Highway and street construction clearly got a big boost from the stimulus; unfortunately many of those projects already are beginning to wind down,” Simonson said. “Without action on new highway and transportation legislation, road and transit builders are likely to suffer further declines.”

In other public categories, educational spending climbed 1.1% in October, while sewage/waste disposal and water supply projects fell 0.8% and 4.9% respectively. Simonson said that some stimulus-funded construction projects, such as water and wastewater projects, have been delayed by Buy American restrictions and regulatory delays in some agencies. “Without quicker action, construction spending will continue to shrivel, and the industry’s unemployment rate will exceed the current 18.7 rate,” he said."

 

But he's got to pay his 'people' for his re-election bid.

 

The money will start flowing closer to re-election time