Construction Expenditure in US Jumps
Published By : 03 Jun 2015 | Published By : QYRESEARCH
Construction spending in the United States spiked in the month of April to the highest level since the May of 2012, that is, in nearly six and a half years, with outlays rising on a broad scale. This indicates that there are still some strong pockets in the US economy.
The Commerce Department on Monday said that construction expenditure rose 2.2 per cent to a yearly rate of US$ 1 trillion, which is the highest level since November of 2008. The percentage increase, however, was the highest since May of 2012.
The outlays in the month of March were revised to present a 0.5 per cent rise in place of the 0.6 per cent drop which was previously reported. Economists surveyed by Reuters had predicted that construction spending in the United States will increase by 0.7 per cent in the month of April.
Even though industrial production and consumer spending have been low in the early part of the second quarter, the report suggests that there will be a certain amount of momentum seen in the sector, based on business spending plans and housing and employment data. The US economy contracted at an annual rate of 0.7 per cent in the first quarter of this year.
The Associated General Contractors of America released a new analysis of federal employment data. According to this, construction employment rose in 232 metro areas between April 2014 and April 2015, dropped in 66 metro areas, and was stagnant in 60.
Officials from the Associated General Contractors of America stated that even though contractors in most parts of the United States continue to widen their payroll, many companies are skeptical about the potential impact of shortfalls in terms of federal transportation funding.