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Tuesday, June 2, 2009

Construction Spending Rises

From Realtor Magazine Online, Daily Real Estate News June 2, 2009

Construction spending rose 0.8 percent in April, the most since last August and a reversal of the drop analysts predicted.

The U.S. Commerce Department said yesterday that residential construction was up 0.6 percent.

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, but these are expected to increase in the coming months as federal dollars filter through.

“Residential construction may be bottoming,” says Steven Wood, president of Insight Economics LLC in Danville, Calif.. “Over the next several quarters, federal stimulus dollars may support public construction activity despite weak state and local government funding.”

Source: Bloomberg, Bob Willis and Courtney Schlisserman (06/01/2009)

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