WASHINGTON – Spending on U.S. construction projects rebounded in February, helped by a surge in home construction, which rose to the highest level in more than four years.
The Commerce Department says construction spending rose 1.2 per cent in February, compared to January, when construction had dropped 2.1 per cent. Spending rose to a seasonally adjusted annual rate of $885.1 billion, 7.9 per cent higher than a year ago.
The advance was led by a 2.2 per cent rise in private residential construction, which advanced 2.2 per cent to an annual rate of $303.4 billion, the best showing since November 2008. Private nonresidential construction was up 0.4 per cent while public construction rose 0.9 per cent.
Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy.