U.S. construction spending up 0.8% in September

U.S. construction spending rose 0.8 percent in September, the biggest increase in one year, the Commerce Department reported Monday.

The gain was much better than the 0.3 percent decrease that analysts had been expecting. It followed a revised 0.1 percent drop in the prior month.

For September, U.S. construction spending was estimated at a seasonally adjusted annual rate of 940.3 billion dollars, 13.0 percent below year-ago levels, reflecting the country's steep recession.

Spending on private construction was at a seasonally adjusted annual rate of 613.9 billion dollars, 0.5 percent above the revised August estimate of 610.9 billion dollars.

Meanwhile, construction spending by the government increased by1.3 percent to an annual rate of 326.4 billion dollars, the highest on record.

The housing slump, which started in 2006 after having experienced white-hot five years, is still underway due to tight credit markets, souring consumer confidence in the overall economy and rising unemployment. But some economists believe the fresh evidence might signal that the housing sector will be recovering soon.

Source:Xinhua