Washington, DC, October 2, 2006--- Construction spending unexpectedly rose by 0.3% in August despite a 1.5% drop in outlays on private residential building projects, the Commerce Department said Monday.
Economists had predicted construction spending would fall by a seasonally adjusted annual rate of 0.1% in August.
A 3.4% increase in private nonresidential construction spending fueled the overall gain, Commerce Department data show.
Spending on manufacturing facilities, power plants, commercial buildings and office projects posted big gains in August, pushing private nonresidential construction spending to an all-time high.
Private residential construction spending, meanwhile, posted its fifth consecutive monthly drop, falling by 1.5%. The last time spending on homes rose was in March.
It's another sign of the ongoing housing market slowdown.
Construction spending in July was revised to fall by a seasonally adjusted annual rate of 1.0%.
Private construction rose by 0.1% in August, the Commerce Department said.
Public construction rose by 1.1%.
State and local construction climbed by 1.4% in August. Federal construction fell by 4.3%, the government said.
