The Construction Sector in the U.S. Economy

The construction sector is a major component of the U.S. economy. During the past decade, construction was a prime beneficiary of low interest rates and the housing-led economic boom, but was also one of the largest casualties of the subsequent financial crisis. Construction spending comprised about 7%-8% of U.S. annual economic output from 1995 to mid-2000, reaching nearly 9% of gross domestic product at the peak of the housing run-up in 2006, before declining to about 5% in 2010. Likewise, construction employment ranged from a low of about 4.6 million during the early 1990s to a high of 7.7 million during the 2006 housing boom, and was about 5.5 million in early 2011.