Spending on US home construction still rising
US home construction spending rose again in August – further evidence of a possible housing rebound.
Spending on residential projects rose 0.9% in August. Residential spending now totals $273.5 billion annually, around 18% more than a year ago.
Spending on single-family homes has now risen month-on-month for five consecutive months, while spending on apartments has increased for ten consecutive months.
Paul Dales, senior U.S. economist for Capital Economics, said the increase in residential spending "provides more evidence that the housing recovery is gathering pace. Unfortunately, the housing sector is not large enough to set the overall economy alight," reported 660 News.
New homes make up less than 20% of the US residential sales market, but stimulate the economy disproportionately through new jobs and tax revenue.