Construction spending rises in July amid broad gains

[WASHINGTON] US construction spending picked up in July, lifted by gains in both private and public sector projects.

The Commerce Department said on Wednesday that construction spending increased 0.3 per cent after being unchanged June. Construction spending rose 9.0 per cent on a year-on-year basis in July.

Economists polled by Reuters had forecast construction spending gaining 0.2 per cent.

Spending on private construction projects rose 0.3 per cent after increasing 0.4 per cent in June. Outlays on residential projects advanced 0.5 per cent, with single-family homebuilding spending increasing 0.9 per cent, driven by robust demand for housing.

Spending on residential projects increased 0.8 per cent in June. The pace is, however, slowing because of expensive building materials as well as land and labor shortages.

Investment in private non-residential construction like gas and oil well drilling slipped 0.2 per cent in July. Spending on public construction projects rebounded 0.7 per cent in July after dropping 1.6 per cent in June. Outlays on state and local government construction projects rose, but federal government spending dropped 1.1 per cent.

REUTERS