–Public Construction Up 2.5%, Highway and Street Construction Up 5.0%
–Private Construction Down 0.9%;Both Residential, Nonresidential Down
By Kevin Kastner
WASHINGTON (MNI) – Spending on construction rose 0.4% in August on
a larger 2.5% rise in public construction that was led by a decline in
private construction, data released by the Commerce Department Friday
morning showed.
Public construction was boosted by a 5.0% increase in spending on
highway and street construction, as well as solid gains in other
categories. The only declines were in the educational and power sectors.
Federal construction spending rose 0.7% in August, while state and local
government spending rose 2.7%.
Private residential construction fell 0.3% in August, the fourth
straight decline. Single-family construction fell 4.2%, while
multi-family building plunged 11.4%. As a result, total new home
construction was down 4.9% in August. However, home remodeling activity
was up 5.0% in the month, based on a Market News International
calculation.
Private nonresidential construction fell 1.4% in August, with
declines in every sector except the health care and education sectors.
July construction spending was revised down to an $808.6 billion
level, or a 1.4% decline from June, compared with the previously
reported 1.0% decline. June construction spending was revised up to 0.1%
gain from the previously reported 0.8% drop.
Analysts in a Market News International survey had expected
construction spending to fall 0.4% in August, though forecasts ranged
from a 0.7% decline to a 0.3% increase.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
