August Construction Spending Up 1.4%, Led By Home Building

WASHINGTON (AP) — U.S. construction spending increased 1.4% in August, led by a surge in single-family homes.

The gain was double the 0.7% increase in July, the Commerce Department reported Thursday, and the August gain was better than economists had been expecting. In an additional sign of strength, the government revised higher its earlier estimates for spending in July and June.

Spending on residential construction rose 3.7% ,with a 5.5% rise in spending on single-family homes offsetting a 0.1% dip in apartment construction, a smaller an more volatile sector.

- Sponsors -

Spending on nonresidential construction fell by 0.3% with hotels, office building and shopping centers all suffering declines.

Total government construction rose a slight 0.1% with spending on highway projects up 1.9%.

“While the outlook for nonresidential and public construction is less certain, the trend in residential should improve further, reflecting strong demand for homes as seen in new and existing home sales,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

- Partner Content -

Sunni LeBeouf

Black History Month Spotlight This Black History Month, Cox Communications is proud to recognize Sunni LeBeouf for her prolific record of professional achievement, civic philanthropy,...

 

By AP reporter Martin Crutsinger

Digital Sponsors / Become a Sponsor

Follow the issues, companies and people that matter most to business in New Orleans.

Email Newsletter

Sign up for our email newsletter