US Residential Construction Spending Slumps For 6th Straight Month As US Banks Report $251 Billion of “Unrealized Losses” On Securities Investments in 2018

Today is a double whammy for bad news for the US economy.

First, The Census Bureau monthly construction spending report reveals that highway and street spending rose 11.7% in January. The biggest decline was communication spending.

https://confoundedinterestnet.files.wordpress.com/2019/03/constspending.png

BUT, US residential construction spending slumped for the 6th straight month. It is beginning to resemble “The Matterhorn” plunge of the 2000s.

https://confoundedinterestnet.files.wordpress.com/2019/03/usconsrtuspen.png

The second whammy is the FDIC report  revealing that US banks reported $251 billion of “unrealized losses” on securities investments in 2018, the most since 2008.

https://confoundedinterestnet.files.wordpress.com/2019/03/us-fdic-banks-unrealized-losses-2018-q4.png

For a less grim chart from The Federal Reserve (and a different metric), here is US Commercial Bank Liabilities Net Unrealized Gains (Losses) Available for Sale.

https://confoundedinterestnet.files.wordpress.com/2019/03/unrelvvl.png

Source: Confounded Interest

***

Residential Spending Slumps For 6th Straight Month As Infrastructure Spending Soars Most Since 2003

https://www.zerohedge.com/s3/files/inline-images/2019-03-13_7-19-16.png?itok=o5Y2plu8

…government spending rescued the headline as public construction rose 4.9% in Jan… thanks to a massive surge in infrastructure spending on Highway and Street improvements…

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