Construction Spending Up, But Still Anemic

The Associated Press



WASHINGTON -- U.S. builders increased spending on homes, office buildings and other projects in August after a big decline in July. The gain still left the construction industry far below levels considered healthy.

Construction spending rose 1.4 percent in August, the Commerce Department said Monday. The increase followed a 1.4 percent drop in July, which had been the biggest setback in six months.

Building activity reached a seasonally adjusted annual rate of $799.1 billion. That's 4.8 percent above an 11-year low hit in March. But it's barely more than half the $1.5 trillion pace considered healthy.