Construction continues on a large multi-unit housing development on September 20, 2021 in San Diego, California. (Mike Blake/Reuters)
Washington – US construction spending was unexpectedly flat in August as growth in public sector projects was offset by weakness in the private sector.
The Commerce Department said on Friday that construction spending rose 0.3 percent in July after reading unchanged. Construction spending grew by 8.9 percent in August on a year-on-year basis. Economists polled by Reuters had forecast a 0.3 percent increase in construction spending.
Spending on private construction projects slipped 0.1 percent after rising 0.2 percent in July. Outlays on residential construction advanced 0.4 percent, possibly lifted by remodeling projects, after rising by a similar margin in July.
Single-family home construction spending fell 0.7 percent and outlays on multi-family housing projects fell 0.8 percent. Lack of land and labor along with costly construction material is hampering the construction of houses.
Investment in private non-residential construction such as gas and drilling of oil wells declined 1.0 percent in August.
Spending on public works projects rose 0.5 per cent in August, matching July’s gains. Outlays on state and local government construction projects increased by 0.8 percent, but federal government spending declined by 4.6 percent.
This News Originally From – The Epoch Times