AGC: The recession is over! But not for construction
According to the Associated General Contractors of America it is growing more likely that real (inflation-adjusted) gross domestic product will rise slightly in the quarter that began on April 1 from the dismal levels of the first quarter. The growth is likely to pick up gradually through the rest of the year. But it will be very uneven, unlike the downturn, which affected all sectors.
Tax withholding was reduced on April 1 and unemployment benefits were increased and extended in duration. These factors alone may be enough to help raise consumer spending, which accounts for 70 percent of GDP. Federal government purchases of goods and services should rise enough to offset declining state and local spending as the stimulus outlays for construction begin. But business investment and net exports, the other components of GDP, may continue shrinking into next year, according to an April 2 Data DIGest report.