CEPR logo

Fact-based, data-driven research and analysis to advance democratic debate on vital issues shaping people’s lives.

Center for Economic and Policy Research
1611 Connecticut Ave. NW
Suite 400
Washington, DC 20009

Tel: 202-293-5380
Fax: 202-588-1356
https://cepr.net

Close

On This Page

April 30, 2014

Residential construction fell at a 5.7 percent annual rate, subtracting 0.18 from growth in the quarter. Weather likely played a big role in this, as many starts were put off in the Midwest and Northeast. While construction will be contributing to growth in future quarters there will not be a big rebound. While it had averaged close to 4.5 percent of GDP in pre-bubble years (compared to around 3.0 percent now), its longer-term level is likely to be closer to 4.0 percent of GDP. This is partly due to demographics and partly due to growing cost of health care.

gdp-2014-04-ge

For more, see the latest GDP Byte.