0.6% Growth in Construction Spending Is Double Analyst Expectations

Before you go, we thought you'd like these...
Before you go close icon

Construction spending rose 0.6% to a seasonally adjusted annual rate of $900.8 billion for July, according to a Commerce Department report (link opens as PDF) released today. That is the strongest performance since June 2009.

After revised spending stayed steady from May to June, analysts' expectations for July proved too conservative. Their 0.3% growth prediction clocked in at just half of July's actual growth. 

Source: Commerce Department. 

Private construction provided the main push for July's numbers. Spending increased 0.9% as residential expenditures bumped up 0.6% and nonresidential expenditures jumped 1.3%. 

The advance in housing activity pushed residential construction to its highest level since September 2008. The increase for nonresidential building was led by a 6.1% increase in construction of hotels and motels. Office building and the category that covers shopping centers also showed gains.

Public construction spending has been a drag on overall numbers in recent times, and the latest report is no exception. Spending dropped off 0.3%, pulled down by educational construction (-1.5%) and highway construction (-1.1%).

So far for 2013, overall construction spending is up 5.6% compared to the same period in 2012.

-- Material from The Associated Press was used in this report.


The article 0.6% Growth in Construction Spending Is Double Analyst Expectations originally appeared on Fool.com.

Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading