Construction spending beats estimates...just don't look at year over year figures

Another economic report data beats the consensus estimates. Construction spending was up 0.1% for June versus the consensus estimate of down 0.8%. May was revised down to -1.00% from the initial report of -0.2%. The equity market does not care about yet another downward prior month revision as that is old data.

Mr. Market has an unbelievable short term memory. When Construction Spending for the month of May was initially released, the -0.2% was well received as it was WAY BETTER than the consensus estimate of -0.9%. One month later, the revision comes in worse than the initial consensus estimate. The revisions to June will be out September 1st. The economic pundits have forecasted a significant recovery for almost two years. Initially, it was a 2nd half 2009 story and when that did not pan out, it became a 1st half 2010 story. Well, that too has been revised to a 2nd half 2010 recovery forecast.

Judge for yourself how far we have recovered when comparing June 2010 to June 2009: Link to complete report: Construction Spending

-7.9% Total Construction
-4.1% Public Construction
         +31.4% Residential
          -5.0% Non-residential
          -21.9% Educational
         +20.1% Transportation
-10.0% Private Construction
          -15.2% Non-residential
          -57.7% Lodging
          -30.5% Office
         +13.0% Transportation
         +1.7% Highway and street
          -32.9% Manufacturing