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U.S. Commerce Department Announces on October 22 that Construction Spending in U.S. Climbed in July to a Four-Year High

10/23/2013 | Construction Blog

The United States Commerce Department announced on October 22 that U.S. construction spending increased in July to the highest level in four years, largely based on gains in residential real estate construction.Construction spending climbed 0.6 percent compared to a median forecast of 51 economists surveyed by Bloomberg, which had called for a 0.4 percent increase.

For the 12 month time period ending in July, construction spending increased 5.2 percent after adjusting for seasonal variations, according to the Commerce Department figures. Private homebuilding outlays increased 0.6 percent to the highest level since September 2008. The gain included a 0.8 percent increase in home improvement from June.

Non-residential building climbed 1.3 percent, reflecting a jump in factory construction, but government spending on public construction dropped 0.3 percent, the report said. Federal construction spending increased 1.1 percent, the biggest gain since last October, while state and local construction spending declined 0.4 percent.

Corporate spending on construction grew at a 9.9 percent annualized rate, exceeding the 9 percent gain previously reported, amid bigger increases in commercial construction.