Construction Spending Takes a Step in the Right Direction

June 1st, 2009

Author: admin

According to Bloomberg, construction spending in the US surprisingly rose in April, despite dismal predictions. The 0.8 percent gain was the biggest since August.

- Non-residential construction, including public projects, increased 0.8 percent. Compared with a year earlier, it was up 2.5 percent.

- Public construction decreased 0.6 percent, restrained by declines in the building of schools, water-supply and sewage- treatment plants. Such projects may increase in coming months as funds from the governmentâ€™s infrastructure stimulus spending filter through to worksites.

- Spending on structures fell at a 42 percent rate in the first quarter, while residential outlays dropped at a 39 percent pace, the government reported last week. The economy shrank at a 5.7 percent rate, after a 6.3 percent decline in the fourth quarter.

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Category: Stimulus Package & Construction | Tags: Bloomberg news, commercial construction news, construction spending rises, infrastructure stimulus spending |

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