WASHINGTON — Spending on construction rose 0.2% in September, slightly below expectations, with both a rise in private construction more than offsetting a public construction decline, data released by the Commerce Department Monday morning showed.
Analysts in a Market News International survey had expected construction spending to rise 0.3% in September. Construction spending in August was revised up slightly to a 1.6% increase from the previously reported 1.4% gain, but July spending was revised down sharply to a 3.3% drop from the previously reported 1.4% decline.
Private residential construction rose 0.9% in September, with single-family construction up 0.5% and multifamily building up 0.2%. As a result, total new home construction was up 0.5% in September.
Private nonresidential construction rose 0.3% in September, but a number of key sectors saw declines. However, health care building rose 3.5%. The level of nonresidential construction, which reached $273.5 billion in September, was the highest since December 2009.
Public construction fell 0.6% in the month to a level of $285.4. Federal construction spending fell 6.8%, but state and local construction rose 0.1% to the highest level since January.