US August construction spending unexpectedly rises 0.9% month-on-month, led by nonresidential
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US construction spending in August, adjusted for seasonal factors, rose 0.9% from the previous month on an annualized basis, according to data released by the Commerce Department on the 1st, a sharp increase that defied economists' expectations of no change in a Reuters poll. Spending on nonresidential construction such as offices and power plants supported the overall figure. July was revised up to a 0.1% decline from an initially reported 0.5% drop. Private-sector construction spending in August rose 1.1% from the previous month, reversing from a 0.2% decline in July, with private nonresidential construction up 1.0%, spending on power plants up 0.9%, and office spending surging 4.6%. Public-sector construction spending rose 0.2%, following a 0.1% increase in July. However, rising mortgage rates weighed on residential construction, and the overall tone remained weak, with August down 1.7% from a year earlier.