Residential construction rose to the record high $550.6B!
Created Sep 12 2007 by W., M.
The US Commerce Department reported that construction spending
jumped in August to the highest level ever. The 0.8 percent increase to a
seasonally adjusted annual rate of $1.02 trillion reflects continued strength in
the housing market.
The increase was double what economists had been forecasting,
and July's figure was revised to reflect an even stronger month than previously
estimated.
-"This was an extremely strong and encouraging report," said
Kenneth Simonson, chief economist at Associated General Contractors of America.
The government's report on construction showed that residential
projects by private builders rose 1.7 percent in August to a record high of
$550.6 billion, on an annualized basis.
Commercial construction increased 0.8 percent in August to an
annual rate of $227 billion, its highest point since June 2002.
Construction spending in September posted its best month on
record as the value of residential projects by private builders also reached a
monthly high, underscoring the role the red-hot housing market played in the
economy’s strong performance last quarter.
The Commerce Department reported Monday that the total value of
building projects under way came in at a seasonally adjusted annual rate of
$910.6 billion in September, representing a 1.3 percent jump from the previous
month. The $910.6 billion level was an all-time monthly high and the 1.3 percent
increase exceeded analysts’ expectations for a more modest advance of around 0.4
percent.
Spending by private builders on housing projects rose by 1.4
percent in September to a rate of $471.4 billion, the highest monthly level on
record.
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