Construction

U.S. Construction Spending Up 0.1 Percent for July

The Commerce Department’s July reports showed a slight increase in construction across the nation for the month of July.

According to the report, increase in public infrastructure projects such as schools and highways plus a slight uptick in homebuilding were responsible for the increases.

The total of all public projects, including roads, highways, government buildings and schools went up by 0.7% in the month. School construction went up at a much higher rate: 2.1%.

Nonresidential private construction such as offices, stores, factories and related facilities, dropped by 0.3% for the month.

Connected with this is a surge in manufacturing for the same period. The Institute for Supply Management reported a jump of its manufacturing index from 58.1 to 61.3 for July. New orders, production and inventories also went up through August, and factories reported increased hiring.

All this ties to an overall increase in the economy. According to U.S. Government figures, the U.S. economy moved up at a 4.2% annual rate in the second quarter. That is over 2X the GDP growth rate for the January – March 2018 quarter.