WASHINGTON — U.S. construction spending increased 1.4% in August, led by a surge in single-family homes.
The gain was double the 0.7% increase in July, the Commerce Department reported today.
Spending on residential construction rose 3.7% ,with a 5.5% rise in spending on single-family homes offsetting a 0.1% dip in apartment construction, a smaller an more volatile sector.
Spending on nonresidential construction fell by 0.3% with hotels, office building and shopping centers all suffering declines.
Total government construction rose a slight 0.1% with spending on highway projects up 1.9%.