Report better-than-expected with largest housing construction increase in 6 years
The Commerce Department reported that total construction spending was up 0.8 percent in September, surprising the street since analysts had forecasted a 0.3 percent drop. August numbers were revised down to show a 0.1 percent drop rather the 0.8 percent gain first reported. The increase was driven by the largest jump in housing construction in more than six years.
As the economy struggles to emerge from the worst recession since the 1930s, many are hoping that housing has bottomed. The 3.9% increase in spending and residential construction is the largest jump in housing activity since July 2003. Some economists are seeing signs of a rebound in this sector which would help support an economic recovery