Construction spending shows the change in the total amount builders spend on construction projects and this is important because it shows the possible development level of the region. It is released on a monthly basis, percentage wise, and normally a print bigger than the expectations should be positive for the currency. However, this should be taken with a grain of salt as because central banks intervened in the currency markets with the quantitative easing programs, then markets become more sensible to news related with central banks policies than to actually categorize an economy based on its performances. That being said, sometimes a better print and normally a positive news for the usd is just shrugged off by markets and the general trend continues.
Looking at the past six months data from February till July this year, you can see there is a small rising trend for the indicator that started with positive readings for the last two months, signaling an improving in the sector and therefore should be taking into consideration for further expansion in the months to come.
The most important things to keep in mind regarding construction spending indicator:
- change in total amount builders spend on construction projects;
- released on a monthly basis, about 30 days after the month ends;
- release time: 14:00 GMT, North American trading session;
- better then expected = positive for the currency