by John Galt
January 3, 2012 11:15 ET
To all this morning’s construction report a joke would be an insult to comedians. The Bubblevision and agenda driven bloggers who wish to deal in hopium rather than facts believe or encourage the seasonally adjusted data to be accepted as the gospel and to ignore all facets of reality. This suspension of belief is destroyed when one takes the non-seasonally adjusted data and observes the projected annualized total, which if the normal declines from November to December bear out, the estimates would present a figure for total spending on private construction in 2011 lower than any number since 1997.
(click on charts to enlarge)
Add in the fact that the public construction data is declining rapidly also, and the formula for a return to the 2008-2009 era of construction layoffs will expand rapidly during 2012.
Once again, it is prudent to read behind the headlines and read the actual data as this report indicates that construction in the United States is still mired in a depression, not a recession and when the final revisions are published, few if any of the same propagandists will acknowledge their current reports or the misleading manner in which it was reported.
To read the report in full from the Commerce Department, click on this link (PDF format).