Tuesday, June 7, 2011

Could there finally be a ray of sunshine within Construction?

Although payroll job growth is pretty poor considering the tremendous amount of slack in the economy, with unemployment at 9.1%, job growth is significantly better year to date than 2010.

2010 Jan - May nonfarm payrolls: 304,000
2011 Jan - May nonfarm payrolls: 783,000
2010 total nonfarm payrolls: 955,000

Unbelievably, one of the reasons for the improvement in 2011 is due to ....... CONSTRUCTION!!!

For the first time since 2005, residential construction employment will probably be positive in 2011. Just eliminating the drag will help. Also residential investment will probably make a positive contribution to GDP growth for the first time since 2005.

------------------------------------------------------------------------------------------LEGAL DISCLAIMER: The views mentioned above are purely that of the author, and does not necessarily reflect the official view of Goldrock Capital or employees. Unless of course the aforementioned view was a phenomenally good call, with exquisite market timing, in which case Goldrock Capital reserves the right to all credit!!!!!

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