0.6% Construction Growth Beats Analysts' Aug. Expectations

Construction spending increased 0.6% in August to a seasonally adjusted annual rate of $915 billion, according to a Commerce Department report (link opens as PDF) released today. 

After increasing a revised 1.4% in July (a substantial upward revision from the originally estimated 0.6% growth), analysts were pleasantly surprised by August's boost, having expected a milder 0.4% bump. Compared to August 2012, this latest rate is 7.1% higher.

Overall construction activity climbed to the highest level in more than four years.

Source: Commerce Department. 

Private construction work provided the main push for the month's gain, increasing 0.7% to a seasonally adjusted annual rate of $641 billion. While nonresidential construction increased just 0.1%, residential construction grew 1.2% to an annual rate of $340 billion. The housing increase included a 1.6% rise in single-family construction and a 3.2% increase in the smaller apartment sector.

While neither amounting to nor gaining as much as private construction, public works managed to squeeze out a significant 0.4% gain to a $275 billion rate, spurred higher mostly by a 1.3% uptick in educational construction. There was a 0.8% increase in state and local government activity offsetting a 3.8% drop in spending on federal projects, which fell to their lowest level since June 2008.

So far for 2013, overall construction spending is up 5.9% compared to the same period in 2012.

-- Material from The Associated Press was used in this report.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2693798, ~/Articles/ArticleHandler.aspx, 4/17/2014 11:31:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement