Construction spending in the U.S. climbed 0.6 percent during September to a seasonally adjusted annual rate of $851.6 billion above the revised August estimate of $846.2 billion, according to the latest figures released Thursday by the U.S. Department of Commerce. It was the highest rate for construction spending since October 2009.
Construction spending in the U.S. climbed 0.6 percent during September to a seasonally adjusted annual rate of $851.6 billion above the revised August estimate of $846.2 billion, according to the latest figures released Thursday by the U.S. Department of Commerce. It was the highest rate for construction spending since October 2009.
Increased spending on houses, apartments and private nonresidential projects outweighed a continuing downturn in public construction, according to the Associated General Contractors of America. Private residential construction reached an annual rate of $285.9 billion in September, 2.8 percent above the revised August estimate of $278.0 billion.
Within the private sector, all three residential categories did well. New single-family construction increased 3.9 percent for the month and 26 percent over the prior 12 months. New multi-family construction rose 1.3 percent for the month and 49 percent since September 2011. Improvements to existing residential structures-a category likely to get a large boost from storm reconstruction-climbed 2.0 percent in September and 12 percent from last year.
"It is heartening to see the growth in total spending, but the progress remains fragile and fragmentary," said Ken Simonson, the association's chief economist, who added that construction spending had dipped the previous month and that spending in several categories remains lower than in September 2011. "In the wake of the massive losses from this week's storm, many construction priorities will be reordered, but overall private and public spending patterns are likely to stick unless federal and state lawmakers devote more funds to construction."