WASHINGTON - Construction spending increased 0.5% at a seasonally adjusted annual rate in September, aided by residential and federal construction, the Commerce Department reported Monday.
Spending in August was revised to a 0.2% decrease from a 0.4% increase reported last month. August’s $797.5 billion in construction spending was the smallest amount since July 2000.
Economists expected construction spending would decrease 0.5% for the month, according to the median estimate from Thomson Reuters.
Private construction was flat for the month as residential construction increased 1.8% and nonresidential construction fell 1.6%. It was the largest increase in residential construction since April and the first gain in five months. Private construction in August was the lowest since July 1997.
Public sector construction spending increased 1.3%. State and local spending increased 0.8% and federal construction jumped 6.1%.
