Both the Wall Street Journal and the Daily Telegraph in London see a potential construction boom in the massive public spending programme now expected from President-elect Barack Obama when he takes office in January.
Obama hasn’t offered details, but anticipating a surge in public-works spending, investors bid up construction and engineering stocks. URS Corp., a San Francisco-based engineering and construction company, rose 34%, global giant Fluor Corp. rose nearly 17% and Granite Construction Inc., a domestic engineering company, rose 22%, Jonathan Karp and Alex Frangos report in The Wall Street Journal.
Aiming to create 2.5 million jobs by 2011, the new president’s spending spree promises to be the biggest public works programme since the New Deal, which dragged the US out of the Great Depression in the 1930s. Obama has promised a massive construction programme for roads, schools, bridges and energ, according to Alex Spillius in The Daily Telegraph.