Thursday, October 1, 2009

non-residential and residential construction

5% and 2% for non-residential and residential construction.
But is it true those construction expenditure has spill-over effect, like building a new home leads many other works (wood, concrete, ...) and buying a new home leads buying furniture, appliance, landscaping, etc?

How how big is the spill-over effect quantitatively?

in reference to:

"Dollar-wise, non-residential construction is about 5% of GDP, residential only about 2%. So the even if residential recovers somewhat, a dropping non-residential will be a net drag on the economy."
- Construction Spending increases in August | Hoocoodanode? (view on Google Sidewiki)

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