Construction Spending Rises Unexpectedly In August
The US Commerce Department reported Monday that construction spending rebounded unexpectedly in August, as state and local governments launched more projects than in any month since the end of the recession. The agency said construction spending rose 1.4 percent, reversing a 1.4 percent decline in July, and surprising analysts who took part in a recent Bloomberg News survey, projecting a decline of 0.2 percent.
The industry is also up on a year-to-year basis, the first such increase reported this year. A substantial increase in construction of multifamily residences like apartments, townhomes and condos provided further evidence that Americans are shifting away from owning their homes and opting to rent instead. Despite the gains in state and local spending in August, public construction is still down 5.3 percent on a year-to-year basis, underscoring the massive budget woes facing states and cities across the country.
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