Washington, D.C., October 3, 2005--Spending on construction projects increased 0.4% in August, according to the Commerce Department. It was the biggest increase in three months.
Sepnding in July's was revised from 0.0% to 0.3%. Economists had forecast an increase of 0.8%
Construction spending has increased 6.1% since August 2004. The figures are seasonally adjusted, but are not adjusted for inflation.
Residential construction outlays increased 0.2% in August after no change in July.
Spending by the private sector increased 0.4% in August after climbing 0.1% in July. Public-sector spending increased 0.5% in August after a 0.6% gain in July.
Non-residential private spending increased 0.8%, the biggest increase since March. Non-residential private spending plunged during the first part of the recovery, but has now increased 3.7% in the past year.
The largest gains in the private sector in August came in amusement and recreation (up 6%), power (up 2.9%) and manufacturing (up 1.3%). Spending on factories is up 22.1% in the past year. Spending on offices and religious buildings fell slightly in August.
In the public sector, the big gainers in August were highways, water supplies and commercial. Spending on schools, public safety and power declined.
