Public Sector Boosts Construction

Tue., Nov. 5, 1996

From Staff And Wire Reports

Construction spending posted the steepest advance in six months in September due mainly to a rebound in government expenditures. Outlays for the vital single-family housing sector shrank.

“Public outlays are essentially supporting the construction industry,” said economist Marilyn Schaja of Donaldson, Lufkin & Jenrette Securities Corp. “Residential construction outlays remain extremely weak.”

Spending on residential, nonresidential and government projects rose 1.9 percent to $573.4 billion at a seasonally adjusted annual rate, compared to $562.7 billion in August, when spending rose 0.7 percent.

The September advance was the largest since spending shot up 2.3 percent last March. The increase helped push spending during the July-September period up 1.8 percent, compared to just 1.1 percent from April through June. For the 12 months ended in September, spending increased 4.2 percent.

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Public Sector Boosts Construction

Jesse Tinsley

Jim Meehan

Molly Quinn

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