New York Construction Report staff writer
Construction spending across the U.S. rebounded in September, with a surge in investment in non-residential building alongside a decline in outlays on single-family homebuilding.
According to a new Commerce Department report, construction spending jumped 0.2% in September after declining 0.6% in August.
That includes a 9.4% increase on private construction projects rose 0.4% after a drop of 0.7% in August. However, investment in residential construction was unchanged, with spending on single-family projects dropping 2.6%. Outlays on multi-family housing projects gained 0.3%.
Interest rate increases have continued, with 30-year fixed mortgage rate averaging 7.08% – the first month above 7% since April 2002.
Residential investment dropped for a sixth straight quarter in the third quarter, the longest such stretch since the housing market collapse in 2006 and spending on private non-residential structures increased by 1%. Also, non-residential spending has declined for six straight quarters and public construction projects have slipped 0.4% and federal government construction spending plunged 12.7%.