Spend a lot or spend nothing at all, it didnt matter, the AP analysis showed: Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation, raising questions about Obamas argument that more road money would address an “urgent need to accelerate job growth.”
Obama wants a second stimulus bill from Congress that relies in part on more road and bridge spending, projects the president said are “at the heart of our effort to accelerate job growth.”
Construction spending would be a key part of the Jobs for Main Street Act, a $75 billion second stimulus - - - - >

The Washington-based groups forecast is more severe than an estimate it made in July, when it predicted a 12 percent decrease. Spending will turn “marginally” higher in 2011, the group said today.
“The magnitude of the downturn has set in,” Kermit Baker, the groups chief economist, said in an interview. This years expected drop compares with a decline of about 20 percent in 2009. “Another bad year is the bottom line, but there are some prospects of recovery as we get into 2011.” - - - - >

Haners reluctance to spend is typical of contractors nationwide. This presents a huge problem for the Detroit automakers because truck sales are directly tied to new home construction. Pickup sales are on pace for their worst performance in 17 years, and GM, Chrysler and Ford still sell 91 percent of all full-size pickups in the U.S.
Even as Detroit tries to gain traction with new small cars and electric vehicles in a government-mandated shift toward greater fuel economy, it needs to sell more Rams, Chevrolet Silverados and Ford F-150s. Pickups often sell for $30,000 or more and typically command higher prices - - - - >

In fact, the overall economy is actually getting a small boost as more buyers walk into model houses ready to sign contracts and builders hire workers to pour foundations and pave roads.
Construction of single-family homes rose in July for the fifth straight month, edging up almost 2 percent to the highest level since last October, the government said Tuesday. Building permits climbed nearly 6 percent.
Each new home built creates about three jobs on average and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.
With new construction up 37 percent from - - - - >

Rising unemployment and reductions in business spending prompted the Washington-based institute to cut its outlook from January, when it predicted non-residential construction spending would drop 11 percent this year and 5 percent in 2010.
“Weve had a really rocky six months in the economy and in the construction sector,” Kermit Baker, the institutes chief economist, said in a telephone interview. “People are seeing a real tough environment out there and not a lot of incentive to invest in projects.”
- - - - >

Despite the poor outlook, shares rose as investors seemed pleased with the companys cost cutting and hopes for increased farm spending.
Sales of Deeres green-and-yellow equipment slid 17 percent, sapped by a global slowdown that has dampened construction and dragged down crop prices. The sharpest sales declines occurred outside the United States and Canada, where Deere has expanded quickly in recent years. Deere said market conditions remain uncertain.
“Clearly, operations dependent on construction activity and consumer spending are feeling the full impact of the sharp downturn,” Robert Lane, Deeres chairman and chief executive officer, said in a statement.
Farmers have grown cautious about - - - - >

In separate reports, automakers said Monday their sales fell in October in what may be the worst drop in 25 years.
Sales sank 45 percent at General Motors Corp., 30 percent at Ford Motor Co., 25 percent at Honda Motor Co. and 23 percent at Toyota Motor Corp.
“Everything we can tell about the economy just got weaker,” said Stuart G. Hoffman, senior vice president and economist for The PNC Financial Services Group. The manufacturing report confirmed the economy is falling deeper into recession, Hoffman said.
The manufacturing index had been hovering near what economists call “the boom-bust” line for most of the - - - - >