December 3, 2013
Statement From LIA Chief Economist John Rizzo on US Construction Spending
By: Dr. John A. Rizzo
"There was encouraging news today from the Commerce Department on US construction spending in October, which rose by 0.8 percent to a seasonally-adjusted annual rate of $908.4 billion. This is the fastest growth rate in more than 4 years. The strong growth was fueled by public construction projects, which increased by 3.9 percent. Federal spending rose by 10.9 percent. Spending on state and local government construction increased by 3.2 percent, pointing to improving government revenues after years of cutbacks. While home construction fell by 0.6 percent from September to October, it has risen by almost 18 percent during the past 12 months. And permits to build apartments increased in October at their fastest pace in 5 years, suggesting that home construction will continue to grow."