Construction spending in the U.S. unexpectedly climbs
Spending on construction in the U.S. unexpectedly rose in April as the housing slump eased and more commercial projects got under way.
The 0.8 percent gain was the biggest since August and followed a revised 0.4 percent increase the prior month, the Commerce Department said today in Washington. Residential construction climbed 0.6 percent and work on power plants and factories propelled commercial construction up.
Federal and local government spending will ramp up as funding from the $787 billion fiscal stimulus package filters through to worksites. Borrowing rates near historic lows and improving business and consumer confidence may help stem the worst housing slump since the Great Depression, according to a June 1 Bloomberg report.