US Construction Drops 1% – Listen For The Screams For The Infrastructure Spending

US construction activity dropped 1% in January largely driven by a fall of 5% in government construction contracts and activity. At which point of course we should all prepare for those screams and demands that the government really just must start spending fortunes on all that lovely infrastructure so many think we need. This is absolutely certainly not the correct policy for us to be following. That is, we shouldn’t up spending just because spending has fallen, instead we should only build exactly that infrastructure which adds value.