U.S. construction spending rose 0.6 percent in September
to the highest level since March 2008, pushed up by a surge in apartment
building.
The Commerce Department said Monday that spending on
construction rose to a seasonally adjusted annual rate of $1.09 trillion.
Construction of apartments and condominiums jumped 4.9 percent in September
from August, while construction of single-family homes rose 1.3 percent.
Overall, private residential construction rose to the highest level since
January 2008.
The housing market has proven relatively resilient this
year amid economic weakness overseas that has hurt American manufacturers and
limited hiring. Commerce reported last week that private investment in housing
grew at an annual pace of 6.1 percent from July through September — four times
the 1.5 percent growth registered by the overall economy.
Spending on nonresidential construction slipped 0.1
percent in September, Commerce said. But spending on construction of churches
and other religious buildings rose 5.6 percent.
Public construction grew 0.7 percent from August.
Spending on schools and other educational buildings rose 2.4 percent, and
spending on water supply facilities was up 4.8 percent.
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Federal construction spending fell 1 percent, the biggest
decline since a 4.4 percent drop in June.
"On the surface, today's data net out to be somewhat
reassuring, if not perfect," said Diane Swonk, chief economist at Mesirow
Financial. "Friday's employment report will be the primary focus of the
Federal Reserve, where the threshold for liftoff is low."
The Fed last week held off from raising interest rates
from record lows but signaled that they will be considering a move at its Dec.
15-16 meeting. For the Fed to delay a hike again, the upcoming jobs report
would have to be a "disaster," Swonk said.
Source: US
News & World Report
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