Construction Spending Rises, Defies Forecasts

Analysts predicted a 0.5 percent drop in construction spending in June, but they were wrong.

The U.S. Commerce Department said Monday that construction spending rose by a seasonally adjusted 0.3 percent annually in June. That’s positive news, despite the fact that overall spending was still down 10.2 percent compared to a year ago.

The increase was driven by federal government spending, which rose 1.9 percent. This offset a 0.5 percent decline in commercial, nonresidential building, including shrinkage in retail and offices.

Source: The Associated Press, Christopher S. Rugaber (08/03/2009)