US construction spending rose 1.2 per cent in February, led by surge in home building

CP22708900
In this Oct. 11, 2012 photo, an ironworker traverses a beam on a new courthouse under construction in Philadelphia. THE CANADIAN PRESS/AP, Matt Rourke

WASHINGTON – Spending on U.S. construction projects rebounded in February, helped by a surge in home construction, which rose to the highest level in more than four years.

The Commerce Department says construction spending rose 1.2 per cent in February, compared to January, when construction had dropped 2.1 per cent. Spending rose to a seasonally adjusted annual rate of $885.1 billion, 7.9 per cent higher than a year ago.

The advance was led by a 2.2 per cent rise in private residential construction, which advanced 2.2 per cent to an annual rate of $303.4 billion, the best showing since November 2008. Private nonresidential construction was up 0.4 per cent while public construction rose 0.9 per cent.

Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles