U.S. construction spending jumps 0.7% in July to highest level in seven years

WASHINGTON (MarketWatch) — Outlays for U.S. construction projects rose 0.7% in July to a seasonally adjusted annual rate of $1.08 trillion, the highest level since May 2008, the Commerce Department reported Tuesday. The gain was in line with expectations. But there was significant strength beneath the headline with June’s gain revised up to a 0.7% increase compared with originally reported 0.1% gain in June. Private-construction spending rose 1.3% in July, fueled by a 1.1% increase for residential projects. There was also a 1.5% gain for nonresidential projects. Meanwhile, public-construction spending fell 1.0% in the month.

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