Sunday, 26 August 2012

Construction Spending Climbs to Almost Three-Year High

Construction spending rose in June to the highest level in almost three years, the Commerce Department said Wednesday.

The 0.4% increase pushed spending to annual rate of $842 billion, the highest level since November 2009.

Economists had forecast a 0.2% increase in June, Bloomberg reported.

Private construction spending rose 0.7%, while homebuilding spending gained 1.3% to $266 billion, the highest level in three and a half years.

Private non-residential projects gained 0.1%, while public construction spending was little changed.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.


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