U.S. construction spending approaches 4-1/2 year high

WASHINGTON Tue Oct 22, 2013 10:11am EDT

Apartments are seen under construction in the booming Over-the-Rhine neighborhood in Cincinnati, Ohio July 2, 2013. REUTERS/Aaron P. Bernstein

Apartments are seen under construction in the booming Over-the-Rhine neighborhood in Cincinnati, Ohio July 2, 2013.

Credit: Reuters/Aaron P. Bernstein

WASHINGTON (Reuters) - U.S. construction spending hit a near 4-1/2 year high in August, boosted by increases in both private and public outlays, a hopeful sign for third-quarter economic growth.

Construction spending increased 0.6 percent to an annual rate of $915.1 billion, the highest level since April 2009, the Commerce Department said on Tuesday.

Construction spending in July was revised to show a 1.4 percent rise instead of the previously reported 0.6 percent gain.

The report was originally scheduled for release on October 1 but was delayed after the federal government was partially shut down because of a fight over the budget. The 16-day shutdown ended last Wednesday.

Construction spending in August was lifted by a 0.4 percent rise in public construction projects. That was the fourth consecutive month of gains and came even as federal government spending on construction projects tumbled.

There was also a boost from spending on private construction projects, which increased 0.7 percent to its highest level since January 2009.

Private residential construction spending jumped 1.2 percent to a five-year high, showing little sign that high interest rates were slowing activity. Part of the increase in residential construction spending reflected home improvement projects.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

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Comments (2)
Yep, the US has set itself on an auto pilot course for yet another round of financially unsustainable building/development – building new branch banks on every corner (Chase & PNC to name 2), new soon to be empty strip malls going up next to empty ones built in ’04-’07 as well as the same tired residential models. Construction workers/Contractors & Developers are flush with cash and are applying for and obtaining new mortgages for houses for their young families. What will they do when this round of construction ends? Look for the real estate market crash to be official Fall 2014 (if not before then).

Oct 22, 2013 11:33am EDT  --  Report as abuse
AlkalineState wrote:
The old suburbs have brown people in them. Let’s build new suburbs further out. No one will ever find us there, and gas will be cheap forever. I can drive 2 hours to work. Beats having brown kids near the lawn.

Oct 22, 2013 12:02pm EDT  --  Report as abuse
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