Monday, May 25th21.4°C
25936
25546

US construction spending rebounds 1.8 per cent in July, biggest gain in more than 2 years

WASHINGTON - U.S. construction spending staged a strong rebound in July, rising by the largest amount in more than two years. All major categories of construction showed gains in an encouraging sign that spending on building projects will help boost the economy in the second half of this year.

Construction spending rose 1.8 per cent in July, the biggest one-month gain since May 2012, the Commerce Department reported Tuesday. It followed a 0.9 per cent decline in June, the largest setback in a year. That decline had been blamed in part on soggy weather which depressed construction activity in many parts of the country.

The July rebound pushed total construction to a seasonally adjusted annual rate of $981.3 billion, the highest level since December 2008. Spending on housing, non-residential and government projects all increased.

Construction spend is now 8.2 per cent higher than it was a year ago as it continues to advance following a deep plunge during the Great Recession when builders sharply cut back because of a glut of unsold homes.

Housing construction was up 0.7 per cent in July to an annual rate of $358.1 billion after two months of declines. Spending on single-family homes rose 0.5 per cent and is 9.4 per cent higher than a year ago while apartment construction rose 0.2 per cent and is 41 per cent higher than a year ago.

Spending on non-residential projects increased 2.1 per cent to an annual rate of $343.6 billion with the strength led by gains in hotel construction, electric power transmission and manufacturing.

Spending on government projects rose 3 per cent, the largest gain since October. Spending on state and local projects was up 3.4 per cent, offsetting a 1.1 per cent drop in federal construction spending.

A slump in construction in the winter contributed to the economy, as measured by the gross domestic product, shrinking at an annual rate of 2.1 per cent in the January-March quarter. That was the biggest plunge in GDP since the first quarter of 2009 during the depths of the Great Recession.

But the economy rebounded sharply in the April-June quarter, growing at an annual rate of 4.2 per cent. Economists think economic growth will continue at a solid pace in the second half of this year although an initial forecast of 3 per cent growth in the July-September quarter may be trimmed following a report Friday that consumer spending fell in July. Economists remain optimistic that Americans will resume shopping in coming months, helped by rising employment and stronger consumer confidence.

In the spring, residential construction grew at a 7.2 per cent rate after two quarterly declines and spending by businesses on construction projects rose at an annual rate of 9.4 per cent.

The Canadian Press


Read more Business News

24947


Recent Trending




Today's Market
S&P TSX15187.40-13.36
S&P CDNX700.09-3.39
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8120-0.0001
Gold1204.30+1.30
Oil60.67-0.74
Lumber273.80+3.70
Natural Gas2.887-0.064

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.49+0.01
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.08-0.01
Russel Metals25.83+0.04
Copper Mountain Mining1.33-0.05
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.17-0.00
Decisive Dividend Corporation2.20+0.60

 



26181

FEATURED Property
2222684#36 9020 Jim Bailey Road,
3 bedrooms 2 baths
$84,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...

_



26418

25217


Member of BC Press Council


24222