0.6% Construction Growth Beats Analysts' Aug. Expectations
Construction spending increased 0.6% in August to a seasonally adjusted annual rate of $915 billion, according to a Commerce Department report (link opens as PDF) released today.
After increasing a revised 1.4% in July (a substantial upward revision from the originally estimated 0.6% growth), analysts were pleasantly surprised by August's boost, having expected a milder 0.4% bump. Compared to August 2012, this latest rate is 7.1% higher.
Overall construction activity climbed to the highest level in more than four years.
Source: Commerce Department.
Private construction work provided the main push for the month's gain, increasing 0.7% to a seasonally adjusted annual rate of $641 billion. While nonresidential construction increased just 0.1%, residential construction grew 1.2% to an annual rate of $340 billion. The housing increase included a 1.6% rise in single-family construction and a 3.2% increase in the smaller apartment sector.
While neither amounting to nor gaining as much as private construction, public works managed to squeeze out a significant 0.4% gain to a $275 billion rate, spurred higher mostly by a 1.3% uptick in educational construction. There was a 0.8% increase in state and local government activity offsetting a 3.8% drop in spending on federal projects, which fell to their lowest level since June 2008.
So far for 2013, overall construction spending is up 5.9% compared to the same period in 2012.
-- Material from The Associated Press was used in this report.
The article 0.6% Construction Growth Beats Analysts' Aug. 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.
