US construction spending surges in August
SPY•US construction spending rose 0.9% in August after a revised 0.1% decline in July, while spending was down 1.7% from a year earlier.
1. August spending rises
Construction spending jumped 0.9% in August, the Census Bureau said, after a downwardly revised 0.1% dip in July. Economists had forecast no change for August. Private construction spending rose 1.1%, including a 1.0% increase in nonresidential structures; office project outlays surged 4.6% and power plant spending rose 0.9%.
2. Housing and public projects
Residential investment increased 1.1%, likely reflecting renovations. Single-family housing outlays rose 0.2% in August but fell 3.5% year over year; the article said higher mortgage rates were weighing on homebuilding. Public construction spending rose 0.2%, as state and local outlays advanced 0.3% and federal project spending declined 0.7%.
