Construction Spending in U.S. Climbs to Highest Level Since 2009 via Bloomberg

Construction spending climbed in September to the highest level in almost three years, led by a rebound in homebuilding that is rippling through the U.S. economy.

The 0.6 percent rise brought outlays up to $851.6 billion, the most since October 2009, and followed a revised 0.1 percent August drop that was smaller than previously estimated, the Commerce Department reported today in Washington. The median estimate of 48 economists surveyed by Bloomberg was for a 0.7 percent gain.

Demand for new homes is boosting residential construction as the real estate market sheds excess distressed properties and borrowing costs remain at record lows. At the same time, concerns about the looming “fiscal cliff” of tax increases and spending cuts set to take effect next year if Congress fails to act may be holding back non-residential projects, which make up about 70 percent of construction spending.

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