Construction spending up 0.6% August to 4-1/2-year high
| October 22, 2013 |
According to the data, total construction spending rose to $915 billion in August. The total marks a 7.1-percent improvement over the same time last year.
The boost comes thanks to gains in both public and private construction. Public construction spending rose 0.4 percent to $274.5 billion—the fourth consecutive month of gains despite falling federal spending—while private construction spending rose 0.7 percent to $640.5 billion. That’s the highest mark for private spending since January 2009.
The Commerce Department’s August report was scheduled to come October 1 but was delayed by the 16-day government shutdown which ended last Wednesday.
Total residential spending rose 1.3 percent to $346.4 billion, while total nonresidential rose 0.2 percent to $568.5 billion. The biggest total nonresidential July gains came in public, which rose 7.4 percent to $9.5 billion, and amusement and recreation which rose 6.9 percent to $14.3 billion.
Private residential construction spending rose 1.2 percent to $340.2 billion while private nonresidential rose 0.1 percent to $300.2 billion. Amusement and recreation was the big private nonresidential winner with a 5.4-percent gain to $6.1 billion, followed by transportation with a 1.7-percent gain to $12. 3billion.
Public residential construction spending rose 4.3 percent to $6.2 billion in August while public nonresidential spending rose 0.3 percent to $268.2 billion.