The construction sector continues to see improvement in large part to gains in residential housing. Construction spending took in an adjusted annual rate of $851.6 billion, a 0.6% increase from August, which was $846.2 billion. This is up 7.8% from a year prior, reported the Commerce Department.
For the first nine months of the year, construction spending totaled $624.8 billion, which is an 8.9% increase from a year prior, indicating that the housing market is pushing forward.
Private spending contributed to the boost in September with a 2.8% increase, a significant improvement from the 3.2% decline in August.
Under the private construction sector, new single family housing saw a 15.9% increase from a year prior, and new multifamily housing saw a 41.5% increase from last year.
Continuing on a positive note, private residential spending rebounded 0.9%, compared to a 0.1% decline in July.
Public construction spending was $271.1 billion, a 0.8% decline from $273.4 billion in August.
A year ago, overall construction was 7.8%, which is compared to 7.6 the month prior.
The improvement in construction spending is a good indication that home building will continue to progress.
