Motley Fool: Declining Construction Spending Could Spell Trouble for Home Improvement Giants

Month over month construction spending is contracting, particularly in private construction and home improvement, and that could spell trouble for companies in the home improvement industry.

Spending on home improvement projects fell almost 2% in May while private construction spending was down 1.5%. “The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery,” said Federal Reserve Chair Janet Yellen in May . She continued by warning that housing activity has been disappointing this year and “will bear watching.”

But housing activity does not exist in a bubble.

Read more at The Motley Fool.

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