Construction Spending Rises 1.4% in August
Builders spent more on homes and office buildings in August, which comes on the heels of a big drop and setback the previous month, the Commerce Department reported Monday. Construction spending rose 1.4 percent in August–with both single-family and apartments showing modest increases. However, construction spending is still considered far below what’s considered healthy levels.
Construction spending reached a seasonally adjusted annual rate of $799.1 billion–nearly 5 percent higher than an 11-year low reached in March. The industry considers $1.5 trillion a healthy pace.
Construction spending did see year-over-year gains in August–the first year-over-year gains in nearly four years, according to the Commerce Department.
Steven Wood, an economist at Insight Economics, told the Associated Press that the increase in construction spending may suggest the sector may be finally bottoming out.