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Breaking Flooring News

Construction spending up, but pace still weak

October 4, 2011


WASHINGTON (AP) - U.S. builders increased spending on homes, office buildings and other projects in August after a big decline in July. The gain is modestly good news for the economy, but it still left the construction industry far below levels considered healthy.

Construction spending rose 1.4 percent in August, the Commerce Department said Monday. The increase followed a 1.4 percent drop in July, which had been the biggest setback in six months.

Analysts noted that much of the increase stemmed from a jump in spending on government projects, such as roads and schools. But with many states and cities short of cash, gains of that size aren't expected to continue, and private construction is still not healthy.

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