US construction spending rose in September to the highest level in 7-1/2 years as both private and public outlays increased, suggesting a modest upward revision to the third-quarter GDP growth estimate.
Construction spending advanced 0.6% to $1.09 trillion, the highest level since March 2008, after an unrevised 0.7% increase in August, the commerce department said on Monday, Reuters reported.
Construction spending has increased every month this year, and the latest gain suggested the economy remained on firmer ground despite some slowing in consumer spending and persistent weakness in manufacturing. Economists polled by Reuters had forecast construction spending rising 0.5% in September. Construction outlays were up 14.1% compared to September of last year.
September’s increase is slightly above the gain the government had estimated in its advance third-quarter gross domestic product estimate published last week.
