Know Your Risk Podcast Growth Rebounding But Construction Contracting
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Jun 2, 2025 The host delves into the current state of financial markets, revealing troubling trends reminiscent of past economic crises. A significant decline in construction spending raises concerns about stagnant home prices and job impacts in the sector. The challenges of wage pressures and immigration policies for builders are highlighted amidst economic recovery. Additionally, the podcast explores global market fluctuations and the military implications of advanced drone technologies, linking these developments to shifts in equity and bond markets.
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Construction Spending Decline
- Construction spending is negative year-over-year for the first time in about six years, indicating a weakening market.
- This decline could lead to employment drops in construction and potentially trigger broader economic recession effects.
Housing Market Stagnation
- U.S. home prices have flattened nationally and even declined slightly in some hot markets like Florida.
- Markets without strict building constraints, such as Houston, may struggle due to overbuilding and inflationary pressures like high lumber prices and wage issues.
Q2 GDP Growth Rebound
- Atlanta Fed's GDP model shows strong positive growth of 4.6% for Q2 after a recent negative quarter.
- This turnaround suggests the economy is rebounding solidly in many sectors including consumption and investment.