Construction Spending at Post-Recession High

September 3, 2015

Construction spending surged to the highest level in more than seven years in July, as the homebuilding industry continues to post improvements, according to the Commerce Department. Both residential and nonresidential construction reached new post-recession highs in July.

Construction spending was up 0.7 percent month-over-month, reaching a seasonally adjusted annual rate of $1.083 trillion. That marks the highest level since May 2008.

"The overall impression from the past few months is that the construction sector overall is the strongest part of the economy, with spending up at a remarkable 26 percent annualized rate in the three months to July," says Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Source: "U.S. Construction Spending Hits a New Post-Recession High," The Wall Street Journal (Sept. 1, 2015)