Construction Spending Rises 0.5% in September

Construction spending rose 0.5% in September, the Commerce Department said Monday.

The increase to $801.7 billion followed a revised 0.2% drop in August that was originally reported as a 0.4% increase.

The September gain was in contract to economists’ forecasts of a 0.5% decline, Bloomberg reported. Spending was down 10% for the 12 months ended in September.

Private construction was unchanged. A 1.8% upturn in homebuilding was offset by a 1.6% drop in commercial projects. Non-residential construction projects fell to the lowest level in more than five years.

Public construction rose 1.3% following a 2.2% increase in August. New transportation grids and schools accounted for most of the gains, Bloomberg reported.

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