Dec
01

Construction Spending Up for Second Straight Month

December 01, 2010

Good news is great news, especially when you’re expecting bad news in the first place.

The Commerce Department on Wednesday reported that U.S. construction spending rose 0.7 percent in October. This comes as quite the surprise considering some economists had predicted up to a 1 percent decline.

Chicago Real Estate construction manThis marks the second consecutive month that construction spending has gone up. That hasn’t happened since March and April of this year.

More positive numbers:

*New home construction increased 2.5 percent. That’s the biggest one-month gain in six months.

*Spending on private construction projects increased 0.8 percent, which doubles September’s increase of 0.4 percent.

*Public construction spending went up 0.4 percent in October after rising 1.2 percent in September, the strongest annual rate since July 2009.

*Construction spending on government projects increased 0.4 percent while federal building rose 0.9 percent. That’s an all-time high on records dating back to 1992.

*Spending on state and local projects rose 0.4 percent.

To see a complete breakdown on all the numbers, click here.

Categories: Economy

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