|
The
Commerce Department said on Monday that construction spending
dropped 0.5% after edging up 0.1% in August. Economists polled
by Reuters had forecast construction spending gaining 0.4%.
Construction spending increased 7.8% on a year-on-year basis in
September. The government reported last week that gross domestic
product increased at a 2.0% annualized rate, stepping down from
the April-June's robust 6.7% pace.
Spending on private construction projects decreased 0.5% in
September after falling 0.3% in August. Outlays on residential
construction dropped 0.4% after nudging up 0.1% in August.
Single-family homebuilding spending declined 0.6% and outlays on
multi-family housing projects slipped 0.3%.
Shortages and more expensive building materials are holding back
homebuilding. Residential investment contracted for a second
straight quarter in the third quarter, weighed down by declines
in home improvements and single-family homebuilding.
Investment in private non-residential construction like gas and
oil well drilling fell 0.6% in September. Spending on structures
declined for a second straight quarter in the July-September
period, led by commercial and healthcare structures.
Spending on public construction projects tumbled 0.7% in
September after increasing 1.2% in August. Outlays on state and
local government construction projects fell 0.4%, xxx federal
government spending plunged 4.3%.
(Reporting by Lucia Mutikani)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
