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Modest Construction Spending Gains Set Four-Year High in August10-29-13 | News
Modest Construction Spending Gains Set Four-Year High in August





Spending on construction increased to the highest level since April 2009 in August, according to an Oct. 22 Commerce Department report. Despite five consecutive months of increases, construction spending is still nearly 30 percent below the pre-recession peak reached in 2006.
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Construction spending rose 0.6 percent to a $915.1 billion annual rate in August, the fifth consecutive month of increased outlays and the highest level since April 2009.

The growth in expenditures followed an upwardly revised 1.4 percent increase in July, the Commerce Department reported October 22. (The report, originally scheduled for release on October 1, was delayed by the 16-day partial government shutdown that shuttered some federal websites.)

Construction spending climbed 5.9 percent in the 12 months ending in August without seasonal adjustments, and private construction spending climbed 0.7 percent from the prior month, reaching the highest level since January 2009.

Homebuilding outlays increased 1.2 percent to $340.2 billion, the highest level since August 2008. Spending on non-residential projects rose by 0.1 percent, including gains for office buildings and communications plants.

Federal construction spending dropped 3.8 percent to $22.9 billion, the weakest since June 2008, while state and local spending climbed 0.8 percent. Total expenditures on government projects advanced 0.4 percent from the prior month.







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