October 1, 2009 – Quoting
a new government report, Reuters noted today that U.S. construction spending
unexpectedly rose at its fastest pace in nearly a year in August, with
investment in private residential construction notching its biggest increase in
almost 16 years.
The Commerce Department
said spending on construction projects rose 0.8 percent, the largest increase
since September 2008, after a revised 1.1 percent drop in July that was
previously reported as a 0.2 percent decline.
Analysts polled by
Reuters were expecting a 0.l percent fall in overall construction spending in
August.
Compared to August a
year ago, construction spending was down 11.6 percent.
Private construction
spending rose 1.8 percent in August, also the biggest gain since September
2008, from a 1.4 percent decline in July. Private residential construction
surged 4.7 percent, the largest advance since November 1993, after 0.6 percent
rise the prior month.
The rise in private
residential construction will bolster views that a housing market recovery is
under way after a three-year slump, and bodes well for a third-quarter rebound
in economic growth.
Spending on public
construction fell 1.1 percent in August after slipping 0.7 percent in July.
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