U.S. builders spent more in October on new homes, offices and shopping centers, pushing construction spending up for a third straight month. Despite the gains, construction spending remained depressed.
The Commerce Department says construction spending rose 0.8 percent in October to a seasonally adjusted annual rate of $798.5 billion. That's barely half the $1.5 trillion that economists consider healthy. Through the first 10 months of this year, construction spending is 2.9 percent below the depressed levels of 2010.
The construction industry was hit hard from the housing bust and has had trouble recovering from the recession. Analysts say it could be four years before construction returns to healthy levels.
U.S. factories grew last month at the fastest pace since June, helped by a jump in new orders and production.
The Institute for Supply Management, a trade group of purchasing managers, says its manufacturing index rose to 52.7 in November, up from 50.8 in October. Any reading above 50 indicates expansion.
Manufacturing has grown for 28 straight months, according to the index. Factories were among the first businesses to start growing after the recession officially ended in June 2009.
Factories added workers, but at a slower pace than the previous month.
U.S. manufacturers are facing strains overseas in key export markets. Europe is struggling with its financial crisis and China's growth has slowed.
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So, what do the economic indicators mean?
Searching for promise of progress in the economy got easier this week.
Wednesday the stock market soared to its biggest gain in more than two years.
We saw record spending on Black Friday and Cyber Monday.
Now, comes the strongest new car sales of the year in the month of November.
Sales people at Terry Labonte Chevrolet benefitted in one area by sales of the Chevrolet Cruze.
"I think there's a lot of people that's been on the sidelines for awhile," said General Manager, Dave Hansing. "The average mileage of people visiting our service department is double what it was 12 years ago."
The compact car increased in sales by 4% nationwide over the previous month.
The more you sell the more people you need to sell.
Terry Labonte Chevrolet hired nine new sales people. They spent Thursday training.
We asked a local economic expert if this is a sign of something bigger.
"Any one month isn't really the death knoll nor is it a sign that we've completely recovered," said Wake Forest University Professor of Finance & Economics, Sherry Jarrell. "It takes several months of data to really make a decision, but I think part of it is pent-up demand."
Jarrell said it could be a step back to a normal amount of car purchases.
But what's helping are the sales and financing deals and Hansing said banks are helping by being more flexible in lending.