US construction slumped in September
U.S. builders cut their spending on construction projects in September, the second straight monthly decline.
Publicly-funded construction dropped 0.9 percent to an annual rate of $270.3 billion. Over the past 12 months, government construction has slumped 7.8 percent – a decline equal to nearly $23 billion.
Both Hillary Clinton and Donald Trump have pledged to revive infrastructure funding if elected president. By reforming the business tax code, Clinton would provide an additional $250 billion in direct funding over five years and found a new infrastructure bank with $25 billion. Trump would rely on new tax credits for infrastructure, with the campaign projecting an additional $1 trillion being spent over 10 years.
The outlook for infrastructure spending has deteriorated this year despite interest rates near historic lows, making it cheaper for the government to borrow and investment in facilities that can help long-term economic growth.