Construction Spending

Following the housing and credit crisis, much of the residential and commercial construction spending declined significantly. This leads to problems for materials suppliers to construction service companies. Lower demand decreases prices, profits and revenue. … "Construction Spending" has a significant impact, so an analyst should put more weight into it. "Construction Spending" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Construction Spending" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.