WASHINGTON – U.S. construction spending rebounded in August after two months of declines, helped by strength in home building, nonresidential construction and state and local government construction.
The Commerce Department said construction spending increased 0.5 percent in August after declines of 1.2 percent in July and 0.8 percent in June. It was the best showing since a 1.6 percent rise in May. Still, the August gain was not enough to recoup the losses of the past two months, leaving spending 1.5 percent below the May level.
Housing construction was up 0.4 percent. Nonresidential activity increased 0.5 percent, reflecting strength in hotel and office building. The August rebound was also helped by a gain in spending by state and local governments, which helped offset a further decline at the federal level.
Subscribe to the Morning Review newsletter
Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter